Women in crowdfunding

By Katie Kostashchuk

Originally published on the Equitise Blog
(republished with permission)

As the world of finance has been, for a long time, seen as an ‘all boys club’, women have been marginalised in traditional forms of finance, venture capital and business angel investing. On average, women-owned firms start and grow their businesses with considerably less external financing compared to men (Department of Commerce US). In Australia, female entrepreneurs have experienced undercapitalisation as a core issue that undermining the success of growing their business. A 2013 study conducted by the (Australian Women Chamber of Commerce and Industry (AWCCI) of 3000 women entrepreneurs found that half of those surveyed required more funding to facilitate the growth of their business. The majority of those women have started their venture with less than $5000 worth of capital.

Crowdfunding platforms, however, now offer female entrepreneurs the chance to promote and grow their business by providing access to capital. By providing such opportunity, crowdfunding democratises finance by placing women on a level playing field with men. Moreover, with a growth in female entrepreneurship in Australia and the amount of women starting businesses increasing by 8.9% in 2013 (AWCCI), access to crowdfunding platforms in Australia will play a key role in providing capital to women. Women are almost 4 times more successful when crowdfunding than raising capital through traditional means. The number of female-owned businesses that receive venture funding in US is only 13%, however the number of crowdfunding campaigns run by women that meet their funding target is around 47% (Forbes).

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Cheers all round: 1st equity crowdfunding campaign in New Zealand raises $700k

By Crowdfund Vibe staff writers

Renaissance Brewing Company has something to celebrate, apart from this weekend’s convincing win by the All Blacks over their fierce rugby rivals, the Australian Wallabies. On Saturday it successfully closed the first capital raising under New Zealand’s new equity crowdfunding laws after just 10 days.

The Marlborough craft brewery launched a campaign to raise NZD $600,000 on 13 August 2014, on the country’s new equity crowdfunding platform, Snowball Effect. Reflecting the strong interest in this new form of fundraising – and no doubt with the added attraction of some free product with its shares – Renaissance reached its initial goal on 21 August. The campaign closed yesterday when a total of 287 investors helped it achieve its funding cap of NZD $700,000.

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The Philippines: Crowdfunding to recover from Typhoon Haiyan

By Crowdfund Vibe staff writers

Typhoon Haiyan (Yolanda) devastated Southeast Asia in November of 2013. It was particularly destructive in the Philippines and catastrophic to the Visayan Islands, leaving thousands homeless. Some of the hardest hit  locations are remote where it is difficult to provide assistance. Governments and organizations like the International Red Cross have helped with money and resources, but more is still needed for the rebuilding effort. In today’s age of technology many people around the world wanted to help those affected by the typhoon; the internet and crowdfunding have been able to raise the necessary funds to do just that.

Large US-based international sites such as Crowdrise, GoFundMe and Indiegogo generated significant funds to help the victims of Typhoon Haiyan. These sites had scores of campaigns from around the world. GoFundMe eventually counted over 230 separate campaigns to help affected people. The not-for-profit crowdfunding platform Crowdrise, at one point featured a rotating carousel of Haiyan aid campaigns at the top of its front page. Two notable high profile efforts were the $65,000 raised by the rock band Linkin Park for their Music for Relief campaign, and the $1.7M that United Airlines raised.

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