Entrepreneurs turn to crowdfunding
Lebogang Baingapi | Friday March 31, 2017 16:04
The method, which is not yet common in Botswana, is whereby an entrepreneur comes up with a business idea and calls on the public to invest by buying shares in the business as a way of raising funds.
Wilson of Ezymox Holdings explained in an interview that during difficult times when the economy is not doing well, entrepreneurs could turn to equity crowdfunding as an option as funding from financial institutions is limited.
He said they are currently going around the country to spread the message of financing through buying a maximum of 100,000 shares at P1 each per person.
He said their business idea involves a smart foods business where they set up supermarkets and liquor outlets, which will be a citizen retail investment.
This, he said will create an opportunity for an ordinary Motswana to be a shareholder in their chain stores. “By buying the shares, Batswana will own limitless investment opportunities and we are selling 15 million shares for starting five shops and liquor outlets, which will supply groceries, hardware, electrical appliances and liquor,” he explained.
Wilson said the idea is to sell more shares to finance the project and currently they are limited to Batswana only. They started selling shares in December last year and the offer is still open for three more months. He said plots have been secured where the shops will be built and they are optimistic of success and growth in the business.
Wilson assured potential investors that their funds will be safe and secure as they will be kept in a trust by established lawyers. They have also engaged an accountant as well as an auditing firm, which will ensure that Batswana are not robbed of their hard-earned cash.
“Once we close the sale of the shares, we will not open for anyone. It should also be noted that shareholders will not be able to sell shares to outsiders.
Sale can only be made to people who are already shareholders,” he explained.
Currently the team is going around the country, doing business presentations and looking for investors who are ready to make passive income and make a lifetime investment. Though they are expecting to raise P15 million at the end of June, P2 million worth of shares have already been sold.