Over $17.2 billion is generated annually by crowdfunding in North America alone. By 2025, the crowdfunding market is expected to increase to $300 billion worldwide. Although crowdfunding has not been without its fair share of controversy and scepticism, many would agree that these platforms help those who may not have any other way to raise money.
Koodoo, a new equity crowdfunding platform, wants to bridge the divide between socially conscious investors and startups looking to impact the planet.
“Koodoo is all about channelling investment support, using the most progressive technology available, to those people with the talent and vision to change our world for the better,” Michael Wilkinson, Koodoo CEO and the former operations director of Crowdcube, said in a statement.
In return, investors will receive a share in the businesses. By using blockchain technology, the funds—either the investors’ local currencies or Bitcoin—will be able to move across geographical borders in a more efficient way than is possible with traditional fundraising methods. As the blockchain is immutable and transparent by design, investors will be able to see where their money is going and feel more connected to the campaign’s mission.
As startups in developing countries and less cosmopolitan areas struggle to receive funding, Koodoo hopes to remove these barriers. The company believes that great ideas should be supported to better the world, no matter where in the world they may be.
“Today if you have a great start-up idea in London, it’s not so hard to get financial backing, but if you’re in Buenos Aires, Budapest or Capetown, it’s a totally different story,” he explained. “That means great commercial ideas that can often generate genuine financial returns are not receiving the capital they need.”
Brandon Kerzner, co-founder and chair of Koodoo, also believes in the importance of removing geographical and structural barriers out of fundraising.
“We are pioneering new blockchain applications, amongst other novel technological approaches, to deliver a way for investors around the world to back what they consider the best and most socially impactful ideas, wherever they can be found.”
Only campaigns that are investment ready and in line with the UN’s Sustainable Development Goals will be approved for the Koodoo platform. After filling out a preliminary questionnaire, the campaigns will be required to abide by the the UN’s guiding principles on business and human rights.
The projects must impact one of two categories: people (education, equality, health, poverty) or the planet (oceans and rivers, land and environment, wildlife, climate action).
The FinTech platform will first launch in London, with the goal of ultimately being accessible to changemakers worldwide.