Financing for entrepreneurs is a complicated subject.

Just this week, we have received multiple applications from entrepreneurs looking for between R30 000 and R100 000 to execute projects or to launch their businesses. As a team that needs to look at these applications, it is very difficult to revert saying that your traditional funding outlets simply aren’t geared to support you or … don’t find business loans of this nature viable in the short-term.

For loans of this size, the usual source of capital will be the so-called “3 F’s” – Friends, Fools and Family. However a new market is starting to open up.

Globally the concepts of Peer-To-Peer lending and Crowdfunding are exploding and entrepreneurs are finding new sources of capital for their businesses. In essence Crowdfunding allows ordinary people to become “investors” in small businesses by putting up early stage capital.

While still in its infancy, Crowdfunding has begun to find its feet. In South Africa, the popular Beerhouse pub chain has been held up as an example of an entrepreneur filling their funding needs through crowdfunding. Founder Randolf Jorberg has regularly made the point that his community of patrons, investors and stakeholders feel like a part of the business.

Importantly, stakeholders are not simply seen as a nameless / faceless source of capital, but rather as investors in the business who will enjoy benefits as the business grows.

In the below TEDx talk, finance professional Peter-Paul Van Hoeken talks about how equity crowd-funding is taking off in Canada and what aspects of it are working. He emphasises the opportunity for ordinary people to become investors in businesses that they believe in:

As a network, we are passionate about building wealth through different investment vehicles – including your own small business. If you would like assistance with a crowdfunding campaign, we can assist, please complete the form below and one of our problem-solvers will be in contact to discuss further.