A Kenyan based startup incubator Nailab has launched a mobile crowdfunding platform Babandu hosted  by the 1%Club site to assist local entrepreneurs to access cheap non equity capital. The site maximizes on the African spirit of communal fundraising also known as ‘Harambee’ that is well entrenched in Kenya’s culture.

Samuel Gichuru, Nailab’s chief executive, said the crowd funding site will help startups get additional capital without losing their equity as when acquiring money through venture capitalist and also reduce the over-reliance on commercial loans that have seen many startups accumulate debt before they made any profit.

“This is still a new concept in this side of the world but we are encouraged by its uptake in such a short time. We hope that more startups will be attracted to this form of financing that does not have an effect on their equity,” CIO East Africa quoted Gichuru saying.

Babandu had already raised 125,000 shillings ($1,450) within 24 hours of its launch and had registered 20 projects that needed funding.

Startups have 100 days on which to attain their goal upon which they will have the money raised transferred in their accounts via Mpesa (a mobile payment platform).

“Upon successful crowd funding startups will have money transferred to their account minus a 7 percent commission to the site while unsuccessful projects will also receive their money but minus 12 percent. Unlike other sites that don’t submit money to startups upon unsuccessful projects we want to ensure they get the little they raise,” Gichuru said.

Nailab says it targets to have 100 projects raise funds through Babandu by the end of 2014. To achieve this they have set up a number of boot camps to sensitize startups on this new model of raising capital.