Local venture builder and business incubator Aions Creative Technology has launched a micro-investment platform that will allow the person in the street to invest in rapidly growing start-ups for as little as R50 a month, contributing to what the company calls the ‘democratising of wealth’ in South Africa.
The new platform, Aions Exchange (AEX), will create a unique offering to start-ups seeking funding as well as South Africans looking to build wealth. AEX will allow investors to own a fractional share in one of the business currently being mentored by Aions, and to share in the profits when the business is sold after three years. All companies listed on AEX are all high growth start-ups, with an innovative and technologically advanced approach to real world problems.
Aions founder and CEO Mitchan Adams says the platform was born using a range of methodologies from crowd funding, stock exchanges, traditional VC models and ICO (Initial Coin Offering). It aims to guarantee a minimum return of 10% a year over the three-year period but says the real returns could be significantly higher if the companies’ growth targets are met.
Serial entrepreneur Adams, who previously co-founded instant EFT and online payments fintech Ozow, says AEX aims to allow all South Africans to participate in the investment and growth of start-ups, and benefit from the wealth created in the process, without the barriers and limitations of traditional stock investment options.
“Investing in start-ups doesn’t have to be reserved for the rich. In fact, micro-investing is the future of entrepreneurship in South Africa. By pooling investments from the ordinary person in the street, and investing in sound and innovative start-ups which can then scale and grow aggressively to be sustainable, we will both create wealth and permanent jobs, which will result true broad-based shared value,” said Adams.
The launch of AEX follows the recent announcement of a partnership between Aions and Telkom’s enterprise and supplier development programme, FutureMakers. As part of the partnership, FutureMakers has awarded R58 million in funding to Aions to grow technology-focused start-ups and small businesses.
Investors can currently choose from three incubator companies currently being funded and mentored by Aions. The Telkom funding will see this number grow to at least 10 in the coming 12 months. The three are financial wellness and salary linked benefit platform Level Finance; electric scooter start-up Green Scooter; and Tubby’s Kitchen, which manufactures a range of healthy cannabis infused kitchen products for home use.
“The success of small businesses depends largely on getting the right exposure and opportunities. Millions of South Africans and small businesses don’t get those breaks. We’ve got to become better at giving people opportunities – and one way to do that is to make the public stakeholders in their success. That way, they benefit from the value-generating power of creating and selling viable businesses,” said Adams.
South Africans will be able to participate in the AEX platform from 8th May 2023 by visiting wealth.aions.co.za.
