Equity Crowdfunding in South Africa: A New Dawn. Crowdfunding in South Africa

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2 Equity Crowdfunding in South Africa: A New Dawn Crowdfunding in South Africa

3 If you want to become a billionaire, help a billion people - Dr. Peter H. Diamandis

4 Global Snapshot 762,52 738,9 597,14 AMERICAS 51.33% EMEA 21.34% APAC 28.33% 2016:Americas was valued at $26.64 billion By 2021 APAC is expected to reach $42.39 billion Value of funds raised through crowdfunding worldwide from 2014 to 2016 (in million U.S dollars) EMEA is currently growing at CAGR of 14.7%

5 Drivers of Crowdfunding (Investing) Economic Regulations Enabling policy from incorporation to bankruptcy, a regulatory framework for crowdfund investing, policy to enable North-South flows Technology Internet access, regulated portals to facilitate the process, technology to facilitate the ongoing communication and new services to facilitate transactions trust relationships, economic predictability and execution Entrepreneurial Culture Co-working spaces, incubators and accelerators, peer-to-peer mentorship, oversight, investor relations/reporting Community engagement Social network, social vetting, startup events & culture of trust

6 Market Potential Europa/Central Asia Potential $13.8 B China Potential $47.6 B 38% 38% Social Media Penetration 74% MENA Potential $5.6 B Latin America/Caribbean Potential $11B 26% 49% Africa Potential $2.5B 43% South Asia Potential $4.9B 52% East Asia & Pacific Potential $8 B

7 Investing crowdfund platforms # CONFIRMED PLATFROMS Estonia China South Africa India Italy Germany Netherlands France United States

8 Crowdfunding Equity Crowdfunding Funds are raised in exchange for an Equity share in a business. Rewards Crowdfunding Funds are raised in exchange for rewards. Donation Crowdfunding All funds raised is in the name of goodwill and charity. Asset-based Crowdfunding Funds are raised for specific equipment needs/assets, and returns are paid on a month to month leasing bases.

9 Crowdfunding Equity Rewards Asset-based Donation thepeople.co.za Impact

10 The First Equity Crowdfunding Platform in Africa South Africa Alternative Funding Disruptive Innovation Regulatory Technology

11 Why Uprise.Africa? Capital to grow businesses Funding readiness Marketing & Awareness Links to services Gain Validation Access to support network Acquire Brand Ambassadors Showcases Links Enables Funding platform Uprise.Africa enables: Funding Readiness A Funding Platform Ongoing Reporting By providing: Legal, Financial & Regulatory Compliance A Technology Platform

12 Equity Crowdfunding How it works 1. Entrepreneur has an idea and needs capital. 2. The Entrepreneur applies online on Uprise.Africa. 3. Uprise.Africa reviews viability, assisting with legal, compliance and pitch prep. 4. Entrepreneur s pitch goes live on Uprise.Africa. 7. The cash is paid out to the Entrepreneur and Uprise.Africa facilitates reporting back to the investors/crowd. 6. If the project reaches its tipping point (minimum requirement for viability), share certificates are issued. 5. The crowd invests into the business in exchange for equity.

13 Drifter Brewing Company Goal: R3,900,000 R1 mil raised in the first 24 hours R3 mil raised in the first 30 days

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15 Basic profile of Uprise.Africa SME Small to medium enterprise Capital raise goal of between R3,000,000 and R50,000,000 Any industry Operational for ideally 2 years All legal documents must be in order Business must be CIPC registered with a registered tax number Business must only be operational in South Africa Entrepreneur must have exclusive rights and IP over the business Business must be generating revenue Business must be have already or is willing to undergo an evaluation

16 Why Uprise.Africa? Raise Capital Visit our website Sign up in 3 easy steps and start your pitch. We assist in all legal and compliance requirements. Help market your campaign And ensure all necessary FICA requirements are fulfilled. Easy to Invest Visit our website Sign up in 3 easy steps. Browse through multiple, locally owned startups We provide the necessary FICA documentation. We will report on how the business is doing after the raise.

17 On-boarding process 1 Application & Yue Diligence 4 Subscription Agreement & Term Sheet 2 Fundraising Agreement 5 Campaign Preparation 3 Legal and Financial Due Diligence 6 Filling the prospectus with CIPC

18 Revenue Model Organisations Accelerators Marketing Activity Influencers VCs Uprise.Africa On-boarding and review process Business application on Uprise.Africa R23,000 application fee Deals go live on Uprise.Africa R20,000 application fee 8% commission on successful raises 10% carry 1 2 Deals that reach tipping point 5-8% commission Crowd 1 Crowd 2 10% carry

19 Sign-up Process

20 The biggest crowdfunding campaigns of 2017 (UK) Core Collective Total raised: 2 million. Platform: Seedrs. Month: April. What is it? Pay-as- you-go fitness class provider GripIt Total raised: 2 million. Platform: Crowdcube. Month: March. What is it? Heavy duty plasterboard fixings Warwick Audio Total raised: 2.1 million. Platform: SyndicateRoom. Month: July. What is it? Audio technology developer.

21 The biggest crowdfunding campaigns of 2017 (UK) Integumen Total raised: 2.1 million. Platform: Crowd For Angels. Month: April. What is it? Personal health company. JustPark Total raised: 2.2 million. Platform: Crowdcube. Month: December. What is it? Helping drivers find a parking spot. Den Total raised: 2.2 million. Platform: Seedrs. Month: March. What is it? Smart-home products.

22 The biggest crowdfunding campaigns of 2017 (UK) DueDul Total raised: 2.6 million. Platform: Venture Founders. Month: September. What is it? Due diligence tool providing business, accounting and director information. Bolt Mobility Total raised: 2.8 million. Platform: Seedrs. Month: September. What is it? All-electric scooter with smartphone connectivity. VitaMojo Total raised: 3.2 million. Platform: Crowdcube. Month: May. What is it? A cashless health-focused, restaurant where you can pre-order your customised meals.

23 Uprise.Africa will democratise funding by disrupting the current funding landscape in South Africa allowing for inclusive growth.

24 Contacts