Equity Crowdfunding turns one in NZ.

There was no fooling about it on 1 April 2014 when the Government legislated changes permitting equity crowdfunding as an additional framework of capital raising and investing for Kiwis.

Equity Crowdfunding was a USD $1.1 billion industry globally in 2014 (a growth of 182% year-on-year) and places New Zealand in the unique position of being on the forefront of this sector in many ways.

One year and one week into this uncharted ‘FinTech’ territory and it’s impressive how both Kiwi business owners and investors have embraced this new opportunity.

This brand new channel for companies to raise funding is already helping to bridge a capital gap that a lot of companies face when they’re starting up or growing.

Here’s where equity crowdfunding campaigns are at (7/4/2015):

  • Campaigns: 16
  • Successful: 8** (Snowball Effect 5; PledgeMe 3)
  • Current: 7** (PledgeMe 5, Snowball Effect 1, Equitise 1)
  • Unsuccessful: 2 (PledgeMe 2)

** PledgeMe currently has one current/successful campaign

With five equity campaigns live there has been nearly $250,000 of investment through PledgeMe‘s platform in the past 24 hours. Part of this investment saw SellShed blow by their targeted raise, meaning when their campaign closes on Thursday they will receive all pledged investment less PledgeMe’s 5% success fee.

The thing that I find most powerful about equity crowdfunding is that as the sun sets around NZ (or greying skies turn black if you live in Wellington) and traditional capital markets retire for some rest:

Equity crowdfunding platforms don’t sleep.

FinTech platforms don’t operate in the way traditional capital investment does.

That’s because click throughs, page/video views, offer doc. downloads, likes, re/tweets, shares, posts, mentions, comments and (most importantly) investors and members of your crowd don’t keep office hours.

———————

Editor’s note: I’m happy to update the above statistics that two PledgeMe campaigns closed Thursday 9 April. Both were successful and have resulted in a collective $917,000 of capital raised for SellShed and Pineapple Heads, meaning nine successful raises and five current opportunities. 

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