TALES FROM THE CAMPAIGN TRAIL

ANNA GUENTHER’S EQUITY CROWDFUNDING PLATFORM PLEDGEME HAS BEEN A TRAILBLAZER IN THE BUSINESS FUNDING SECTOR FOR THE PAST FIVE YEARS. SHE TALKS ABOUT THEIR ACHIEVEMENTS, THE STAND-OUT CAMPAIGNS, HER PERSONAL PASSIONS AND THE FUTURE OF EQUITY CROWDFUNDING.

PledgeMe’s Anna Guenther has been a trailblazer in the business funding sector for five years. She talks about their achievements, the campaigns, her passions and the future of equity crowdfunding.

NZB: In 2014 when you featured on the cover of this magazine, you were one of only two licensed intermediaries operating in the equity crowdfunding market. What have been the major milestones in the market since then?

ANNA: 2014 feels like a lifetime ago! As you know, we were the first (equal) licenced platform in New Zealand, the first country to change its legislation to specifically cater to equity crowdfunding. Since then, we’ve been busy. Over $45 million has been pledged through Pledgeme. We’ve launched new products and launched in Australia.

Milestones here in New Zealand have been the first campaigns hitting their maximums and the change to the Takeovers Code that finally allowed small companies to have more than 50 voting shareholders. This only happened in November 2019, more than five and a half years after the legislation changed.

NZB: What has surprised you the most about the progress of Pledgeme over the past five years? Has it met your predictions and expectations?

ANNA: In 2017 we realised that equity crowdfunding wasn’t equitable. It was still more difficult than it should’ve been to raise investment.

We partnered with Māori Women’s Development Inc to create a programme and support process to try and change that for Māori founders. We’re still figuring out how to work best in treaty partnerships, but it’s definitely been one of my biggest personal realisations.

It extends to regional founders, female founders, and more. However, I’m pleased to say that while only two percent of venture capital typically goes to female founders (and I think it’s 0.5 percent to female CEOS), around 50 percent of companies that have campaigned successfully through Pledgeme have female founders and 40 percent have female CEOS.

NZB: What occupies you the most these days in the business? Do you get involved in advising young start-ups, for example?

ANNA: My day-to-day is focused on supporting campaigners – be it through our structured preparation programme, through calls, or through the presentations I give. I also like spending time with our alumni, seeing where we can help and trying to tell their stories.

I still spend quite a bit of time with early-stage companies (especially in the social enterprise space) chatting about what they’re doing, their plans, and their big impact goals.

NZB: What solid advice can you share to help businesses successfully prepare for a crowdfunding project?

ANNA: The biggest piece of advice is to talk to your crowd before you decide! This doesn’t need to be a big public thing, but definitely try to chat to people you know before you decide; to see if your plans resonate with them. Don’t just listen for a ‘yes’; ask about what confuses them about your proposed plans, any potential barriers, and what they would want if they did pledge.

NZB: Name two or three of the standout businesses that have exceeded expectations by raising funds through the Pledgeme platform? What did they have in common?

ANNA: The common factors of our successful campaigns are a good crowd, good communication and a good campaign.

Personally I am most proud of Ethique, the solid shampoo bar company started by Brianne West. Since she raised through us in 2015 and 2017 she has stopped over six million plastic bottles from going to landfill (her initial goal was one million by 2020) and was Deloitte’s fourth fastest growing company last year. Her impact and revenue are intertwined – more sales means less plastic waste.

Our most recent success was Happy Cow Milk, a company creating a storage unit for farmers that pasteurises milk and is thereafter sent directly to cafés. The goal is to place units where people can purchase and refill milk using their own reusable bottles, reducing plastic.

The founder’s crowd has always supported him in doing things differently – most recently raising $400,000 within eight hours of the campaign launching publicly.

“I LOVE AND WILL CONTINUE TO BE A PART OF PLEDGEME BECAUSE I BELIEVE DISTRIBUTING OWNERSHIP AND POWER WILL HELP TRANSFORM THE ECONOMY HERE IN AOTEAROA.”

NZB: How have you improved the Pledgeme offering and platform since you first launched?

ANNA: One of our company values is to ‘be constantly evolving’, and we definitely have been.

Since gaining our equity licence in 2014 we’ve created an education programme to support our campaigners called Crowdfundingu. It covers everything from the legalities of equity crowdfunding and how to write an investment memorandum (and actually supporting them to write it) – to communications planning, video scripting, and more.

While every company is different, and some are more experienced in capital raising, we’ve found Crowdfundingu not only provides templates and tools, it provides hands-on support and feedback that founders really value.

We’ve also redesigned the platform twice. We are constantly improving it for both campaigners and pledgers.

NZB: What are some of the more unusual businesses that have successfully raised funds through Pledgeme over the years?

ANNA: There have definitely been a few. One of our early project campaigns, where people offer rewards rather than equity, was for someone building a bionic hand for his friend – and then decided to make it a business!

Lately, we’ve also had several medical cannabis companies raising investment both in New Zealand and Australia. It’s an up-and-coming industry and I can’t wait to see what happens after the 2020 referendum.

But probably the most unusual thing we’ve seen is the growth of the social enterprise movement – companies that want to do good tend to struggle in the traditional finance sector. They’ve really thrived through equity crowdfunding though, with around 60 percent of our successful campaigners being impact-focused.

NZB: What are your personal goals going forward? Do you have any interests outside the business?

ANNA: I love and will continue to be a part of Pledgeme because I believe distributing ownership and power will help transform the economy here in Aotearoa.

That said, I do have a few side things that keep me busy. I help organize unconferences (participant-driven meetings), started a side cheese business with some of my founder friends, and I’m currently a Fellow at the Yunus Social Business Centre at Griffith University in Brisbane. I’m also writing a book, but I’m not sure when I’ll complete it. Like crowdfunding, I really need an all-or-nothing deadline.