R6m in 6 weeks: Here’s how GoGetta did it

Two African start-ups, Shuthuka Flagship Farm and Trailored, have raised more than R6 million (about $350 000) in just six weeks through equity crowdfunding. The rounds to reach their respective minimum funding goals were facilitated by GoGetta, a newly launched platform focused on businesses from across the continent.

Shuthuka Flagship Farm, a KwaZulu-Natal-based macadamia farming operation, raised R4 million funding for expansion. Trailored, a Gauteng manufacturer of customised trailers, raised nearly R2.3 million.

“Equity crowdfunding is growing in popularity internationally as it gives investors access to businesses in exchange for shares,” explains GoGetta co-founder Sthembiso Zwane. The platform offers qualifying start-up founders access to retail and institutional investors.

“Investors can take comfort that businesses listed on GoGetta undergo a robust due diligence process and are vetted by experienced start-up and financing professionals. In fact, of the 256 businesses reviewed for a listing since January 2022, just four were approved for listing on the platform which is a good indication of their quality.”

South African and international retail, angel and venture capital investors can select vetted opportunities on GoGetta and invest quickly and securely amounts of as little as R1 000 ($58) or more to own shares in various African start-ups.

Shuthuka chief executive Warwick Blamey says the funding raised will be used to grow their business and increase exports.

“GoGetta provides so much more than a platform to showcase the business and attract investors. The team has given us great advice and leveraged its extensive network. GoGetta did a lot of work behind the scenes to find the right investor fit,” he says.

Meanwhile, Trailored chief executive Hlanganiso Maluleke adds: “My father started this business in his garage. Together, we have driven significant growth and we are ready for the next phase of our expansion. The GoGetta teams’ years of experience with start-ups has already added so much value in terms of sound advice and strategic direction including opening the doors for further capital.”

Venture capital group WDB Growth Fund, a subsidiary of WDB Investment Holdings, provided a substantial portion of the funding for Shuthuka and also invested in Trailored. The balance was funded by individual investors, or the crowd.

Says Oupa Monamodi of WDB Growth Fund’s Investment Committee, “The decision to fund these businesses for an equity stake was made much easier by the extensive due diligence carried out by GoGetta ahead of any engagement with the entrepreneurs. The verified and credible information on each of the businesses made it easy to see the compelling case for funding both Shuthuka and Trailored.”

Equity crowdfunding is an innovative way for start-ups to raise capital from the public. Instead of relying on banks and venture capitalists, start-ups can use equity crowdfunding platforms like GoGetta as a marketing tool to attract investors.

GoGetta is seeking attractive start-ups to list on the platform that want to raise investments between R1.5 million and R10 million in exchange for stakes in their businesses.

All businesses featured on the platform must satisfy a due diligence process carried out by GoGetta’s experienced investment committee before a fundraising agreement is concluded. Only African businesses can list on the platform, but investors can be located anywhere.

GoGetta is powered by one of South Africa’s most respected administrators in the small cap alternative investment space, Grovest. With a track record of over 10 years in entrepreneurship funding, Grovest has assets under administration of over R3.5 billion. GoGetta is regulated by the Financial Sector Conduct Authority.

Businesses currently open for investment on GoGetta include UMOYA!!, which operates in the telecommunications sector. The start-up provides affordable data and improved internet connection to under-serviced communities in South Africa.

Other options include Investmint, an innovative loan platform for SMEs, and Naked Cuber which creates bespoke art pieces.

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