UPDATE (10 December 2019): While Intergreatme’s equity crowdfunding campaign closed with the startup having raised a total of R32,601,000 against a targeted raise of R24-million — the startup had to give back over R25-million of the raise because the money that investors pledged was suspect (see this story).
The startup — which was founded in 2016 by James Lawson, Dewald Thiart and Luke Warner (pictured above) — has an identity management platform which provides users with control of their identities across financial services, telecommunications and insurance.
By 3pm today and with 53 days left of its campaign, Intergreatme had raised R28,479,000 from 165 investors — well over its target of R24-million, in exchange for a 20% share in the startup.
The startup details in its prospectus that it is allowing investors to invest a further R8-million for another five percent equity.
Uprise.Africa CEO Tabassum Qadir has called the Intergreatme campaign a record for African crowdfunding
While Intergreatme business operations head Garyth Ditchfield said the startup would not be issuing any comment on the raise, until tomorrow morning — Uprise.Africa CEO Tabassum Qadir called the raise a record for African crowdfunding.
“I think it’s pretty safe to say that we have hit a record in equity crowdfunding in Africa for the fastest raise ever,” commented Qadir via Whatsapp earlier today.
She said the campaign is still open and would run until this Friday (24 May).
When the campaign closes, the startup would likely only receive the investment 30 days later, after the various prospectus have been filed and agreements with the various shareholders signed, she explained in a subsequent call to Ventureburn.
Qadir pointed out that while the startup had raised about 10% of the amount or R2.8-million in a 14-day private offering before the official launch of the campaign on 15 May (not 14 May as earlier reported by Ventureburn), about R25-million of the figure had been raised from investors within the first 72 hours of the official launch (see this story).
The largest commitment from any one investor was R5-million, the maximum permissible amount a single investor could put in. Investors had to invest at least R1000. She would not disclose who had committed the R5-million.
Why have some crowdfunding campaigns succeeded where others have not?
Qadir said it came down to those seeking the investment basically having a good social media and marketing strategy. “You can be ready for investment, but not ready for crowdfunding,” she added.
Having raised R28-million in lightening time, other startups might ask themselves — do they really need the help of venture capitalists?
Featured image: Intergreatme co-founder Luke Warner (via Twitter)