GetEquity is a Nigeria-based investment platform that came into the market with the aim of “challenging the status quo of startup financing and venture capital” in Africa. The company’s aim is to make funding easy and quick for African startups, and also help common people partake in the booming startup ecosystem.
GetEquity is co-founded by Jude Dike, William Okafor, and Temitope Ekundayo, and launched in July this year. It is a product of a series of iterations. Initially, the co-founders didn’t set out to democratise startup investment in Africa. Dike and Okafor are blockchain engineers building a blockchain exchange platform, whereas Temitope worked around a big data analytics product. But on getting into the Mozilla Accelerator, the trio realised that they could form a team to build one of the most sought innovative products in Africa.
On GetEquity, startups get instant access to several angel investors, syndicates and institutional investors. They also get the chance to raise investment from their communities and customers, “giving ownership and building a stronger sense of belonging with their most loyal customers”.
For example Ade , 27 , wants to invest in a high-growth startup but doesn’t know where to start, and when he finally finds some answers, his cheque is not enough to be an LP or even get him into an angel investor and he gives up. On the other side, Ada, a young founder, is struggling to raise enough capital to keep her startup running. So, she shuts down the business.
But what if Ada could find 10, 30, 50, or even more, of Shola who only have maybe $200 or less to invest? She could have raised close to what she needed to keep her business alive. This simple idea led to building GetEquity.
Across the world, investing in startup businesses is not usually a public affair; it is mostly available to capital institutions, top-tier individual angel investors, syndicates sometimes, family and friends. Though this is still largely the case, startups like GetEquity are making a decent effort to disrupt this privileged arrangement and open up the space to any interested party.
GetEquity has released a couple of features that makes investing on its platform even better; it launches secondaries where users can sell off their token according to its present value. For instance, if a user wishes to sell their token after buying and keeping for a while, all they need to do is indicate their interest to sell and they will be matched with a buyer.
GetEquity has a wallet infrastructure that users can use to hold value until ready to invest in their chosen startup. It charges between 0.5-5% on every transaction, depending on the payment option chosen. There’s also an option to fund a wallet with crypto for those living where crypto dealings aren’t frowned at, thanks to its partnership. The company also charges startups 4% commission on transaction.
GetEquity raised $100,000 in April this year, raised an undisclosed six-figures pre-seed from Green House Capital, a renowned fintech investment shop based in Nigeria, and this validates the potential of its products.
Since the investment, according to the co-founders, the company has experienced a 100% growth rate across all metrics. It has over 4,000 users on its platform. About 20 startups are currently listed on its platform and over $400,000 has been invested on the platform.