The e-commerce industry in South Africa has experienced a boom since the start of the COVID-19 pandemic — and Black Friday was no exception….
A while ago, we wrote about the partnership between FNB Private Clients and AngelHub, which gives startups access to a pool of high-income investors. In the same way, a new online investment platform, Corculutre.com gives both established and early stage businesses the opportunity to virtually pitch their businesses to a group of 30 private equity and VC funders with funds available to the tune of ZAR250 million.
To ensure a better chance of fostering successful relationships between entrepreneurs and investors, the platform’s team carefully assesses deals before listing them on Corculture.com — things like product or service demand and an entrepreneurs performance potential are key.
Businesses that produce proposals that meet Corculutre.com’s crediblity and financial viability standards, are allowed to present their idea by recording a short video pitch.
Corculture.com’s funders then watch the recordings and can choose to get in touch with the businesses they find compelling.
“We believe entrepreneurs have a far better chance of gaining interest this way as investors want to see who they are backing straight away. It cuts out a lot of wasted time,” Corculture.com CEO, David Seinker.
Seinker calls himself a “serial entrepreneur” and had his start in real estate at Property Group, where he managed a large asset portfolio. Following his success in raising funds online for a property project in 2011, he identified an opportunity to offer a similar service in South Africa. He is joined by CFO Brian Horwitz, an experienced chartered accountant, who analyses the merits and shortfalls of all Corculture.com’s business proposals.
The platform is built to accommodate, companies looking for funding in the range of 1 and 10 million South African Rand and a single investor is required to invest at least ZAR1 million. Seinker says that there is no limit on the deal size and that some of Corculture.com’s investors seek minimum deals of ZAR20 million and up. Entrepreneurs from all industries are welcome.
Corculture.com charges ZAR3500 for a successful proposal to be listed on its platform for six months. In addition, a five percent “success fee” is charged when a deal is successfully concluded with one of its funders.