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.
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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.