Blog

Equity Crowdfunding – The Perfect Pairing For the Venture Capital Ecosystem

Please pass the bread basket

Equity crowdfunding is the perfect appetizer to pair with the entrée of venture capitalism (too bad VCs haven’t realize it yet!). Venture’s are often looking for small companies they can scale to massive profitability, and generally, startups that complete an equity crowdfunding round, have in effect been vetted, by the everyday people that make up the crowd of small investors supporting those startups.  Of course that doesn’t mean every investment is a slam dunk – professional due diligence is always important. However, it does give venture groups reason to believe in the viability of a startup.

Why? Because smaller investors have fewer equity investment options; as such they are more vocal with their support for what they adamantly believe in and will in turn heavily market their investments to their network. Less options to build wealth make for a very motivated and engaged network that seizes opportunities that arise. Overall, equity crowdfunding activates a wider, more motivated investor pool that ultimately benefits the venture capital ecosystem. For everyday people, equity crowdfunding is an inexpensive path into the investment market; a place they could not easily tread before 2016.

The industry is quickly gaining momentum, even in Australia. Down Under, equity crowdfunding has more than doubled from $2.7 million to $6.9 million (in tech and startup), just in the first quarter of 2019. Crikey!

Grab a seat at the table

Even though the overall success rates of equity crowdfunding campaigns are higher, it’s well known that women and minorities struggle to secure funding; forcing many to rely on their network and personal savings. Equity crowdfunding offers investment opportunities for everyday people, but it also flips the script on who gets a seat at the table with regards to startup funding.

Here’s a real world example of how it worked for Behemoth Brewery:

“Behemoth is seeking to raise up to $3.5 million through crowdfunding and wholesale investors, which represents 13.09% of the company. Shares are priced at $1 each with a minimum investment of $1,000. Investors will receive additional rewards with each share parcel sold, which could include discounts, merchandise, exclusive event invitations, beer naming, and of course Behemoth beer. Those that invest over $50,000 will receive voting shares.

The crowdfunding and wholesale investor campaigns has already raised a combined $500,000.” (source

Read more about equity crowdfunding:

It’s about more than money

Boosting inner cities and local economies

Working overtime as a secret job creator

Increasing inclusivity

Kirsten Campbell

Share
Published by
Kirsten Campbell

Recent Posts

Coffee Talk: Charting New Paths – DigitalAMN’s Strategic Position in a Diversified Landscape

Hey Friends and fellow coffee drinkers! 😊 In recent social posts, New Frontiers and Secret…

1 month ago

Coffee Talk: Exploring DigitalAMN’s Vision with Ajene Watson on The Street Reports Podcast

Hey Coffee Drinkers! ☕ Today's Coffee Talk takes you on a journey through the latest…

1 month ago

Coffee Talk: Unveiling the Scope – DigitalAMN’s Market Potential and Strategic Edge

Hey Friends! Today's Coffee Talk unveils an exciting perspective on DigitalAMN's market potential and our…

1 month ago

CoffeeTalk: Embracing Evolution – How DigitalAMN’s Enhanced Understanding Shaped Our Corporate Identity

We’re certainly evolving at DigitalAMN! Today's Coffee Talk focuses on a pivotal aspect of our…

2 months ago

DigitalAMN: Our Reg. D And the Future of Multinational Investment—Operating Companies

A Capital Raise that will Fuel the ‘Impact—Value Investing’ Combo of the PAI® The R&D…

8 months ago

Investor Types: Accredited vs. Non-Accredited, Which One Are You?

When it comes to investing in the securities of private or public companies, there are…

9 months ago

This website uses cookies.