09 November 2017 @ 8:00AM Equity Crowdfunding Investors
Arpi Devi Kunuturu is a 26 year old who’s excited about the new, innovative equity crowdfunding opportunity that’s just arrived in Australia. She’s an outgoing, fun individual who has a background in finance, and likes to invest. Her relatability to the everyday millennial investor places her as a prime candidate to answer some questions which you may also have about equity crowdfunding. Here’s our chat with her.
When equity crowdfunding goes live in Australia the OnMarket platform will enable me to see plenty of new equity crowdfunding offers of innovative, growing Australian companies that I am now allowed to invest in. I can now be an angel investor.
My primary focus, and I’m sure most people are the same, is to make financial returns. However, this isn’t my only motivation. I believe that examining how the company is going to affect society should also be considered. We should try to make investment choices that better our society – even at the expense of a higher financial gain. In fact, I’d prefer to invest in a company for an 80% financial reward and a 20% social benefit, rather than an investment that gives me a 100% financial reward only, with no social benefit.
A key factor is the experience of the company’s management. I need to have faith that the management team have some expertise in the field they are pursuing. Exposure to the industry is vital to success. The company would be even more appealing if they’ve successfully pursued projects in the past– it shows me that they can do it again. In addition, the management team need to be passionate. I need to see that they are willing to work hard to turn their vision into a reality.
I like to invest in companies that are innovative and represent where the future is headed.
I like to invest in companies that are innovative and represent where the future is headed. If it represents some kind of change by solving a common societal problem, then I’m more likely to invest in it.
It’s a great opportunity. Previously in order to invest in innovative growth companies, you needed to be earning $250,000 a year for the past two years, or have $2.5 million in assets. No millennial has this kind of money! Now, people like us can invest small amounts in companies that we would like to support, that are innovative, growing, and we can hopefully make a financial gain while we’re at it.
No, not really. The good investments are usually the ones that are long term. I would manage my income so that I only invest money that I’ve ‘put aside’ – an amount that I won’t worry about for the next 3-5 years.
For someone like me, who doesn’t have an extremely strong financial background, the main thing I want is the platform to perform a reasonable level of due diligence on the companies they offer. I am not going to know where to look for a company’s discounted cash flow, pre-money valuation, post-money valuation, nor do I know much about what they really mean. So, I need the crowdfunding platform to effectively do most of that work for me. It’d be very helpful if the company outlined a list of things they check in their due diligence process.
My advice would be to just take a risk and invest. Don’t wait for your friends to start – start the trend yourself. Don’t look to other people for approval in what you invest in – invest in companies you want to see succeed, that are bringing about a change in the world.
Don’t look to other people for approval in what you invest in – invest in companies you want to see succeed, that are bringing about a change in the world.