SA’s first equity crowdfunding platform to launch later this month

South Africa’s first equity crowdfunding platform will be unveiled by ThundaFund founder Patrick Schofield in a soft launch later this month, Schofield confirmed today.

Schofield did not want to comment on the launch of the platform, which is expected to take place in Johannesburg, saying only “at this stage, no comment, treading lightly right now :-)” in an email to Ventureburn.

However a source said the soft launch is aimed at creating awareness on the platform to those in the media and to startups in search of equity finance. The platform is expected to initially list six startups or projects, the source said.

South Africa’s first equity crowdfunding platform will initially list six startups or projects, a source said

When asked on whether the Financial Services Board — which has not crafted any regulations on equity crowdfunding for South Africa — had approved the setting up of the platform, the source said only that they were “not at liberty to discuss these details” but added that the platform would “stand legal muster”.

Read more: FSB misses its own crowdfunding deadline

Schofield in August last year told The Financial Mail that his idea is that deals on the platform would first be approved by venture capital (VC) funds before being placed on the platform for other investors to consider. A VC or angel investor would then agree to provide a sizeable portion of the required equity for the investee company.