{"id":35480,"date":"2023-10-20T14:38:50","date_gmt":"2023-10-20T14:38:50","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/kiwis-show-the-way-with-equity-crowdfunding-anna-guenther-says-startupsmart\/"},"modified":"2023-10-20T14:38:50","modified_gmt":"2023-10-20T14:38:50","slug":"kiwis-show-the-way-with-equity-crowdfunding-anna-guenther-says-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/kiwis-show-the-way-with-equity-crowdfunding-anna-guenther-says-startupsmart\/","title":{"rendered":"Kiwis show the way with equity crowdfunding, Anna Guenther says – StartupSmart"},"content":{"rendered":"
Relaxing the regulations surrounding equity crowdfunding in Australia could have huge benefits for the startup community, PledgeMe founder<\/a> Anna Guenther says. <\/p>\n \u00a0<\/p>\n PledgeMe is a crowdfunding platform based in New Zealand, where the legal framework and new regulations surrounding equity-based crowdfunding were introduced last year.<\/p>\n \u00a0<\/p>\n Guenther says this has had a huge impact already.<\/p>\n \u00a0<\/p>\n \u201cThe traditional size of a normal campaign is $NZ5000, the traditional size of an equity campaign is $260,000,\u201d Guenther says. \u201cEquity campaigns are definitely huge for us.<\/p>\n \u00a0<\/p>\n \u201cWe\u2019ve already nearly tripled what we did last year in the last six months, and that\u2019s predominantly because we got equity crowdfunding going and those campaigns are a lot larger.\u201d<\/p>\n \u00a0<\/p>\n Equity crowdfunding allows contributors to provide money to a campaign and receive a stake in the business instead of the usual rewards.<\/p>\n \u00a0<\/p>\n Crowdfunding campaigns are becoming increasingly popular for startups, often providing an efficient way to test a product and gain market traction. But in Australia currently it\u2019s mostly contained to this rewards-based system, rather than contributors being able to obtain equity in the business.<\/p>\n \u00a0<\/p>\n At the moment in Australia only \u2018sophisticated\u2019 investors with assets of at least $250,000 can participate in equity crowdfunding, shutting the option off to most Australians.<\/p>\n \u00a0<\/p>\n In New Zealand any company can raise up to $NZ2 million each year through equity crowdfunding, and anyone can contribute.<\/p>\n \u00a0<\/p>\n The regulations came into force last year, and PledgeMe was one of two platforms to first receive a licence.<\/p>\n \u00a0<\/p>\n The Wellington-based startup closed its own funding round through the platform within less than a day, while beer brewers Yeasty Boys raised half a million dollars in half an hour through an equity campaign.<\/p>\n \u00a0<\/p>\n \u201cIt\u2019s a lot more relaxed here than what the Australian regulators are proposing,\u201d Guenther says.<\/p>\n \u00a0<\/p>\n \u201cThe platforms are licensed by our regulators, and there are some rules to ensure the campaigns aren\u2019t false or misleading, but it\u2019s up to us how to do that.<\/p>\n \u00a0<\/p>\nLoosening the laws in New Zealand<\/b><\/h2>\n
On the agenda in Australia<\/b><\/h2>\n