As women in business we have a great ability to build communities and rally support of those around us. Communicating and collaborating is something we thrive at.
And so it was interesting to read in the Financial Review this week an article indicating that female led or co-founded businesses are raising 25% more in equity crowdsourcing campaigns when compared to companies founded by men. In comparison, less than 5% of global venture capital funding is received by business founded by women.
As an alternative source of capital, equity crowd funding allows a larger number of people to invest in a business, for which they receive shares in the company in return for their cash investment. This funding method has grown in popularity since 2018 when changes to the Corporations Act allowed more companies to use this option, and legislative changes also allowed advertising on social media platforms.
The article lists the largest raises for female founded companies in 2020 as Renae Bunster with hot sauce company Bunsters at $2million and Erica Bartle $1.3 million to fund Outland Denim, her ethically made clothing company.
The funding method has a focus on achieving long term buy in from a wide range of investors who will become brand ambassadors for companies they support and means that women who want to invest in businesses have the opportunity to do so, and also to give back to and support other women.
Great to see women supporting other women to succeed.
How can Walsh Accountants help you?
We are focused on supporting women in business, giving them the support and confidence to thrive and succeed. With a strong team of female accountants and advisors, we are well equipped and dedicated to assist women in business in all aspects of their journey.
If you are a woman in business and you’re looking for a dedicated team to support you throughout your journey, look no further than Walsh Accountants.