It’s crazy that it’s the end of July already. This licensing journey for equity crowdfunding took a bit longer than we anticipated — but we did it. We’re totally stoked to be one of the first licensed equity crowdfunding platforms off the block!
In a way it’s really good that the FMA took a while working with us to finalise the license, we’re building a new industry and we need to be ready for anything.
And we are ready. Our new design for equity is ready to go (sneak peek above). We’ve got a variety of companies interested in launching with us, and some good media coverage of the changes — including this TV3 piece. After four months work it all fits. PledgeMe projects and PledgeMe equity are inter-related: it’s all about kiwis funding things they care about. Be it projects or companies.
So what’s next?
We’re going to hard launch on the 15th of August — with a bit of fan fare up and down the country. CAUTION: THERE WILL BE PARTIES and you will all be invited to join in the festivities. Keep an eye out here and on our Facebook and Twitter for more details.
In the meantime: if you’re interested in joining the growing crew of companies that want to launch with us, drop us a line. You’ll need to be ready to provide:
- Descriptions of your company, team, what you’ll use the growth funding for, and your future plans
- Your current financials, and forecasts (as a pdf)
- A draft business plan to attach (as a pdf)
- Your valuation (and an explanation of your method)
- Your minimum and maximum funding goals
Once that info is on our system, you’ll need to get all of your directors to sign the issuer agreement confirming that you’re all on board with the campaign, and that we can complete the required background checks.
If you want to start investing in companies then keep an eye on PledgeMe on the 15th of August. We think you’ll like what you see. But don’t forget – the first pledgers on any campaign will probably be the family, friends, and customers of the company first, followed by a wider crowd if it strikes the right chord.
We’re excited to be changing the face of the financial markets AND crowdfunding in New Zealand — one start up (and stay up) at a time.
Key Facts about Equity Crowdfunding
- Maximum Raise: $2 million (per 12 month period per company)
- Average raises overseas: $80,000 – $120,000 for equity stakes from 10-20%
- Legislation: Equity crowdfunding was legalised under the Financial Markets Conduct Act 2014 – that came into play on 1 April. Companies are required to run their campaigns through licensed intermediaries (like us), and still need to comply with other legislation (reporting, Takeovers Code etc).
- Launched: February 2012
- Number of users: 35,000+
- Money raised to date: $2.5m+
- Number of projects funded: 640+
- Largest campaign: $206,000 for Back the Bull (+ matched funding taking the total to $700k+)