Democratising Venture Capital
Equitise is democratising the venture capital and private equity landscape in Australia and New Zealand through equity crowdfunding. For the first time, everyday people can invest in innovative and high-growth start-ups on the same terms as institutional investors and funds.
What is Venture Capital?
Optimistic, eccentric, ambitious, defiant, confident… the outliers.
These are some of the characteristics that Venture Capital firms are looking for when meeting entrepreneurs. Ninety percent of start-ups fail; yet VC firms meet thousands of outliers annually as they understand some of these founders will be the ones to stop at nothing to beat the odds and carve their own path, or fail trying.
Venture Capital hits the sweet spot between savvy investors and these hungry entrepreneurs; where their small businesses are injected with funds to pursue growth and where investors can realise fantastic returns. However, due to the high failure rates of start-ups, Venture Capital investments are considered to be a high-risk alternate asset class.
Who are we and why do we exist?
Historically, investing in high-growth start-up companies was only available to high net worth individuals, family offices and other sophisticated investor. This meant that everyday people (retail investors) did not have access to this alternative asset class. Equitise flips this model on its head. We are on a mission to democratise access, enabling the everyday Aussie and Kiwi (retail investors) to invest on the same terms as institutional investors, from as little as $50. It's called equity crowdfunding.
Democratising - sounds interesting but how does this work in practice?
Equitise operates as an intermediary between businesses raising capital and a community of investors, providing a platform for businesses to receive investments from everyday people. In return for investing their capital, investors receive ordinary shares in the company, in the hope of being able to sell their shares at a future date at a higher share price.
Crowdfunding, pooling together funds from a crowd, is not a new idea and has been practiced for centuries. One of the earliest example of crowdfunding was in 1885, when Joseph Pulitzer called on the American population via ‘The New York World’ newspaper to open their wallets to fund the construction of the Statue of Liberty. Since then the concept of crowdfunding has developed and now includes equity crowdfunding whereby investors receive equity in return for their investment.
What are the benefits of crowdfunding for investors?
1. Equity crowdfunding provides everyday people with early access to high-growth investment opportunities:
- Equitise facilitates increased portfolio diversification for retail investors by widening the universe of investible assets. As part of an asset allocation strategy, portfolio diversification leads to higher risk-adjusted returns.
- Equitise has a robust team with extensive experience across capital markets, venture capital and technology. All investment opportunities on our platform are highly vetted and have been through a stringent due diligence process.
- Equitise has consistently been the thought leaders in the industry. In January 2018, on the same day that ASIC granted crowdfunding platforms with an AFSL (Australian Financial Services License), we pioneered the industry by launching Australia’s first equity crowdfund, Xinja.
- It's a highly accessible investment with offers starting from as a little as $50. Whilst early-stage investments can pose greater risk, there is also the potential for greater returns as you're getting in on the ground floor.
2. The ability to diversify across sectors:
- Contrary to many specialised Venture Capital funds, we are a sector agnostic firm. We believe that when offering investment opportunities to a ‘crowd’, we owe them the chance to back the sectors that they understand and believe in.
- We have raised funds for a diverse range of companies operating in fintech, e-commerce, craft beer, ag-tech, SaaS, robotics, THC, and more! Check out our case studies for more information on our funded businesses.
3. The opportunity to invest in a business you're passionate about:
- Equitise allows investors to support the companies they believe in from as little as $50.
- All Australians and New Zealanders over the age of 18 have the opportunity to invest through Equitise.
What are the benefits of crowdfunding for businesses?
1. Organisations can leverage and grow existing databases in the process:
- An active crowdfunding campaign allows entrepreneurs to receive thousands of organic site visits from potential users and investors, generating significant brand awareness.
- Entrepreneurs can convert their existing customers into shareholders in the business, aligning interests and allowing their customers to join the business in its growth story.
- To date, Equitise has received over 5,000 investments, having raised a total of over $10 million to date. Every time a new offer is launched, we call on our active, growing ‘crowd’.
2. Proof of concept:
- An equity crowdfunding campaign is a great way to generate momentum and build interest in your business.
- Every individual investment made through the Equitise platform demonstrates market validation and tells a story of trust and belief that your business will generate successful returns in the future.
3. It introduces and aligns future loyal customers:
- The individuals that invest in your crowdfunding campaign are the early adopters most likely to be loyal customers from the onset. These are the loyalists who believe in your idea and team enough to commit investment in your long-term success.
- After the capital raise is complete, these early investors are the ones most likely to promote your venture with friends and family and share it with their social and professional network, generating a viral ‘word of mouth’ effect.