Life After Crowdfunding Failure

The South African fintech firm My-iMali attempted to crowdfund a minimum of 7.5 million Rand (1 Rand = $0.068) up to a maximum of R25 million for a 20% equity piece on the crowdfunding platform UpriseAfrica.

myimali

My-iMali is an app that permits businesses to save thousands of rands in bank fees by depositing employee pay on the digital app instead of using a traditional direct bank deposit. The employee then uses a debit card to utilize the money.

The firm’s crowdfunding failure was apparently due to the fact that it was, at the same time, trying to negotiate a deal with a venture capital firm.

In the end, the VC deal was struck – terms were not disclosed.

So, the crowdfunding attempt may not have raised the cash but did provide some publicity for the firm. However, it’s likely that the valuation agreed with the VC was, shall we say, less rich than what the public was being offered.

So, there is life after crowdfunding failure, even if it’s not as lucrative as one would have hoped.

https://ventureburn.com/2019/12/my-imali-nets-investment-crossfin-after-crowdfunding-campaign-fails/

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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