For startups, announcing the successful close of a funding round is a moment of triumph, symbolizing validation and progress. However, the journey to this achievement often involves a time-consuming and challenging process for both entrepreneurs and investors. Enter Raise—a Nairobi-based platform aimed at simplifying and streamlining fundraising activities in Africa.
Raise serves as a digital equity management tool, designed to connect founders and investors in a seamless manner, enabling them to activate and finalize deals more efficiently. According to co-founder and CEO Marvin Coleby, Raise aims to bring transparency, security, and simplicity to the venture capital landscape across Africa.
How Raise Works
Raise operates as a web-based private equity exchange, allowing companies to handle investment processes with minimal hassle. Founders seeking investment can create a profile on the platform, which includes essential due diligence information. They can then establish a virtual deal room to engage potential investors actively. Invitations are sent to investors, who can access company dashboards to simulate and negotiate deals. Once agreements are finalized, electronic share certificates can be issued through the platform.
Raise simplifies equity management further by offering tools to evaluate the implications of potential investments. Although direct payments are not yet supported, future updates are expected to integrate this feature. For now, the platform focuses on reducing inefficiencies like long email threads and unnecessary travel for negotiations.
Enhancing the Startup Ecosystem
Nichole Yembra, managing partner at Chrysalis Capital and an early investor in Raise, highlights how the platform empowers companies by proactively organizing data investors typically seek, such as cap tables, formation documents, and performance metrics. This transparency builds confidence and expedites the investment process.
Raise also gained the attention of Yele Bademosi, founder of Microtraction and Bundle, who recognized the potential for blockchain technology to revolutionize securities management in Africa. Compared to existing tools like Captable.io and Carta, Raise is seen as more cost-effective and better tailored to the African market.
Focused Growth
Raise primarily supports startups transitioning from seed funding to Series A, a stage that often involves greater scrutiny and complex due diligence. The platform offers a curated checklist of essential data points, facilitating smoother interactions between founders and investors. By formalizing this process, Raise aims to enhance the credibility of African startups and position them for global opportunities.
Since launching in private beta in early 2020, Raise has facilitated transactions worth over $20 million and received support from Binance Labs, Chrysalis Capital, and Microtraction. With plans to launch publicly, Raise envisions a future where African startups can scale efficiently, supported by a reliable fundraising ecosystem.
