The South African Investment Network is a paid membership platform that connects entrepreneurs with angel investors (both local and international) and helps them get funded.
Angel investors are typically wealthy former entrepreneurs or executives who have business experience. They provide capital to early-stage businesses usually in exchange for equity or convertible debt. Angels generally only invest in companies that they believe have an earning potential.
To raise capital on the platform, each entrepreneur is given the opportunity to pitch their business and set their capital requirements and a minimum investment amount. The network’s system then matches the entrepreneur’s pitch with the right investors based on their investment amount, region, and sector(s).
According to their website they have 294,614 angel investors worldwide who look at all stages of business and across all sectors. The platform has raised R4 billion for their members.
See also: A Guide to Crowdfunding in South Africa
Type Of Funding – The South African Investment Network uses an equity-based crowdfunding model. This means investors provide the business owner with finance to grow the business in exchange for a percentage ownership of the business and a share of profits as well as a lump sum when they exit.
Qualifying Criteria – All businesses across all sectors may join the network and pitch for funding.
Application process – For an opportunity to pitch, entrepreneurs can sign up on the website and make use of their resources to create a pitch that will get the attention of investors.
Entrepreneurs are required to set the maximum amount of funds needed and the minimum each investor can give. They can also view different investors’ investment ranges.
Unlike most crowdfunding platforms, entrepreneurs can accept funds from investors at any time – they do not have to reach any funding target. Pitches can also be edited at any time.
Application must-haves include:
The South African Investment Network offers a number of membership packages with different offers and benefits. The platform does not charge a commission on any money raised.
The content and structure of each pitch is reviewed by the South African Investment Network team. They are able to provide feedback and check for typos, errors in spelling and grammar, and opportunities to improve written English.
Angel investors typically expect rapid growth.
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