Crowdfunding has been hailed as a panacea for anyone with a great idea or worthy cause, but lacking the necessary capital to get projects off the ground. A derivative of the concept of crowdsourcing, crowdfunding relies on many small monetary ‘pledges’ instead of one or two major capital contributions from established investors.

In theory, all crowdfunding requires is a reliable internet connection and a talent for online marketing, so the concept is ideally suited to technology entrepreneurs who are adept at navigating the digital realm. In practice, though, crowdfunding is demanding on both the creators and users of the platform. In the US, crowdfunding sites like Kickstarter (with over $350 million pledged since launch) have had some high-profile successes, but local attempts have proved dismal. One of the first was Crowdfunding.co.za, positioned by founder Eve Dmochowska as a platform to raise capital for ‘viable local online startups’. Despite having the support of 1 000 willing funders and an impressively high-profile board (including Yola.com founder Vinny Lingham and Quirk CEO Justin Spratt), the platform failed to get off the ground, leaving many early investors disillusioned.