Equity crowdfunding…..in numbers

Equity crowdfunding…..in numbers

Well, what an incredible ride that was! On 31st March, Xinja closed Australia’s first ever equity crowdfunding raise where we gave retail investors the opportunity to help us build our bank and to invest in our business from just $250. The response was overwhelming and we can’t thank our amazing investors enough! We raised a total of A$2,440,250, with which we are absolutely delighted.

The most fascinating part of the whole exercise for us was learning just who it was joining us on our journey to become the first Australian neobank!

Since no Australian company had raised money this way before, it wasn’t easy for us to predict at the outset who our investors would be and what we’d achieve by the time it closed. Our neobank friends in the UK, such as Monzo have had a lot of success with crowd-sourced funding in the past, so we could look to their experiences, but we couldn’t be sure of exactly what would happen in Australia. And as much fun as it was watching the total increase hour by hour in our deal room, the most fascinating part of the whole exercise for us was learning just who it was joining us on our journey to become the first Australian neobank.

Opening up investment in start-ups to more Australians

We were justified in setting a low entry point as almost 50% of our (total individual) investments were $500 or under

We learnt that the amount people invested was telling. Last year when we were planning our equity crowdfund, we had no idea the amount people would want to put in and at what level we should set the entry price.

What we found was that we were justified in setting a low entry point as almost 50% of our (total individual) investments were $500 or under. We also attracted investors wanting to put in higher amounts, with over 40% of the overall total raised coming from investments of $5,000 or above.

(As a side note to this, we are equally grateful to every single investor whatever you put in! In the words of our CEO, love your work!)

Appetite for investment amongst younger Aussies

Whilst most 20-somethings aren’t sophisticated investors or venture capitalists, they jumped on this chance to invest in Xinja.

Age was also very interesting. 25-34 year olds invested most frequently, followed by 35-44 year olds. This just goes to show how accessible equity crowdfunding is to everyone and the appetite for investment in this country! Whilst most 20-somethings aren’t sophisticated investors or venture capitalists (and therefore wouldn’t normally have the cash or opportunity to invest in start-ups), they jumped on this chance to invest in Xinja.

Where were the women investors?

The first thing we learned very early on was that most of our investors were men! Xinja’s Chair Lindley Edwards wrote a blog about the gender imbalance and the possible reasons for it. Lindley wrote her blog using the first week’s data, when just 13% of the total investment came from women. By the end this did increase, but not by much.

Also, as you can see from the first chart on this page, the gender divide was even more apparent in certain age groups, with almost no female investors in the 18-24 or 65+ age brackets.

Our equity crowdfund in numbers

So just quickly let’s just recap our equity crowdfunding in numbers! What did we learn?

We achieved $500k in 18 hours, $1m in one week and almost $2.5m in total

  • We raised A$2,440,250 – that’s 488.1% above our minimum target!
  • We achieved $500k in 18 hours, $1m in one week and almost $2.5m in total
  • There were 1,222 investors
  • The average investment was $1876.54
  • As mentioned above $250 was still the most common investment with 26.5% of investors
  • 67.7% of investors invested $1000 or less
  • Investments of $10,000 made up the highest pool of total investments (27.4%)
  • 25-34 year olds invested most frequently, however 55-64 invested most overall

Well that’s it! Once again a massive thanks to our incredible investors, we’ll be in touch with each and everyone of you very soon about what happens next.

We’d love to carry on this discussion further with you – please visit our new Community Forum, where you can ask any questions or leave your comments or feedback on our equity crowdfund or anything at all to do with Xinja.

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