Equity Crowdfunding Brings Greater Equity To Funding

Women and minorities have traditionally been underfunded in the venture community. Two years since the implementation of the Security and Exchange Commission’s Regulation Crowdfunding, data is beginning to show a shift.

 

Republic CEO and co-founder, Kendrick Nguyen, observes, “If you look at the number of women founders who represent almost 50/50 of entrepreneurs in the U.S. and the venture capital that goes to women founders is in the single digits in certain years and hovering around 10 11 to 14% in some other years which reflects a great inequality. And on our platform today as you know some 45 percent of capital invested on Republic has gone to teams with a women founder.”

 

With respect to minorities, he says that 30 percent of the capital raised on the Republic crowdfunding platform goes to founding teams that include an African American or Latino founder.

 

If these trends hold over time and across other platforms, the long-delayed implementation of the 2012 JOBS Act could have just the effect intended: job creation.

 

Ofo Ezeugwu, CEO and co-founder of WhoseYourLandlord, successfully completed a crowdfunding round on Republic in April. He says Republic was helpful for three reasons. First, they promote diverse entrepreneurs with tags on the listed offerings indicating a female founder or a black founder. He notes, “There’s pride in having the tags on your campaign.”

Second, he says, the team at Republic works hard to help campaigns succeed. “They set up conference calls, will retweet your posts and will listen to and help you adjust your strategy through the whole process.”

 

Third, he says, “It feels like they are creating a knowledgeable, positive movement in the equity crowdfunding space.” He describes it as a “platform of today.”

 

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