Crowdfunding 2.0

Friends, family and fools: the typical starting point for entrepreneurs with a good idea, but not enough money to get it off the ground. Now, around the world, since the 2008 global financial crisis, that cohort has a new member: the crowd.

Crowd-based funding has seen sites like Kickstarter and the locally based Thundafund make it possible for people to support projects in exchange for swag, experiences or early releases of the product.

Crowd equity funding is a step up from this. It gives backers the opportunity to own a piece of the startup they want to support. First seen in the US, UK and other countries that have provided favourable regulations and tax incentives for investing in small businesses, crowd equity has now arrived in South Africa.

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