GetEquity launched in 2021 when there was an investment bubble caused by Stripe acquiring Paystack for $200 million causing the employees and investors of Paystack wealthy.

GetEquity keyed into this bubble like every business would do to make the dream of these investors come to life. 

What GetEquity also did differently was pooling the funds of investors together in a situation where a single investor’s money is not enough to invest in a company and after these investors got into it, they realized the grass can only be greener where you water.

This was largely due to the thinking economy, high inflation, VCs backing out of investing in startups which is a bit worse for Africans, and also avoiding too risky investments. 

This has also had an effect on GetEquity as the number of participants has dropped even with the large number of people who registered.

What is Next for GetEquity?

Looking at the data and after interpreting it clearly, they have seen that it is time to pivot a bit, not entirely by allowing investors to also make low and medium-risks investments in bonds and other safe assets. 

This is why they are raising $1m, to facilitate this little transition and acquire more customers and investment options with it. 

Looking at their earlier data, “Only 20% of investment portfolios are in high-risk investments like venture capital. 50% of these portfolios are low-risk investments, and the rest are in medium-risk investment vehicles,” said Jude Dike, the startup’s CEO.

That is, only 12% of GetEquity’s 14,000 users actively invest in startups, and to reach revenue they have to raise these funds. They generated $320,000 in 2022 and were hoping to reach revenue goal last year, but it didn’t happen. With this funding, they are sure they will reach the revenue goal. 

What this means is that GetEquity will start competing with the likes of Risevest, Cowrywise, and PiggyVest and they are ready for it. Also, they are a bit different from these listed fintechs because they won’t manage funds for customers but pool their funds together to invest not passing the threshold of investment set by the fund manager.