Group investing platform SheEO is planning to raise $1 billion to fund at least five female-founded startups a year.
The organization aims to connect crowdfunding with micro-financing under the plan.
SheEO believes that crowdfunding and micro-financing could also help elevate female founders, which has been reportedly overlooked when it comes to funding.
“I want to put my capital into female innovators who are strengthening our communities,” said SheEO founder Vicky Saunders.
Saunders candidly added: “I don’t want to put my capital into the same old dumb apps that don’t do anything in the world.”
According to an article on womenlovetech.com, aside from funding female-led businesses, “the SheEO investors also provide their expertise, connections, and marketing support.”
“It’s an act of radical generosity,” Saunders said.
SheEO has 500 women who contribute $1,100 each (that’s a total of $550,000) to an investment fund.
The money is pooled together to loan to female founders at zero percent interest. The next year, another 500 women (repeats are allowed) contribute $1,100 again.
When the companies pay back their loans within five years, the fund continues to grow.
Saunders aim is to reach one million investors, fund 10,000 women-led ventures and create a $1 billion perpetual capital by 2026.
2017 is the third year of SheEO’s existence, and the organization has had 15 portfolio companies and invested $1.5 million.
Saunders said the companies that get the loans amounting to $100,000 have to be earning between $50,000 and $1.5 million in revenue a year and either be majority women-owned or women-led.
In developing the crowdfunding and micro-financing model, Saunders drew on her experience raising funding through venture capitalists, through loans, from friends and family, and through grants.
SheEO wants to show that crowdfunding and micro-financing can work hand-in-hand.
In fact, Saunders is going to talk about how her funding model works during her trip to Sydney, Australia next month.
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