Kenyan startup ElevateHR seeks to raise up to Sh40 million via crowdfunding

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Kenyan startup ElevateHR seeks to raise up to Sh40 million via crowdfunding

Cloud Human Resource Management firm ElevateHR Africa is trying to raise up to Sh40 million through the crowdfunding model from local investors as part of their pre-seed round after successfully obtaining $100,000 from local venture capital firm Here Ventures in July last year.

Crowdfunding is a form of funding a project by raising money from a large number of individuals who each contribute a relatively small amount, usually via the Internet.

puzzle of Kenyan startups in trouble after Sh34bn funding.

Although not common in Kenya, crowdfunding has been utilized frequently in advanced economies like the US and European nations.

In a statement, ElevateHR said local investors would have an opportunity to invest a minimum of Sh200,000 with a 14 percent interest rate per year compounded on principal.

Mark Karake, the company's chairman and founder, said the funds will be used to increase its customer base.