B Corp crowdfunding

Crowdfunding

B Corp DoneGood on Why Investment Crowdfunding Makes Sense for Social Enterprises

Cullen Schwarz | September 20, 2018

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When a lot of tech startups raise an investment round, they turn exclusively to deep-pocketed venture capitalists in Silicon Valley. For some of those investors, the only real goal is fast growth and massive profit, by any means necessary—goals their startups inherit.

Like the mission-driven brands our company works to support, DoneGood strives to be different from those tech startups and VCs. Obviously that’s the opposite of what being a Certified B Corporation is all about.

We created DoneGood to help build a grassroots, people-powered movement. So, we wanted to start our next round of investment with a grassroots, people-powered crowdfunding campaign. If we’re bringing on additional investors of DoneGood, we’d like those investors to be true believers in the business as a force for good movement.

The Most Powerful Force for Change

Our team believes that the dollars DoneGood spends are the world’s most powerful force for change. Americans gave $390 billion to nonprofits last year — but we spent $130 trillion buying stuff. If even a slightly greater fraction of that spending also can go to companies that reduce poverty, fight climate change and otherwise create a better world, the impact is huge. We believe consumer spending is the force that can most rapidly advance the B Corp movement.

Americans gave $390 billion to nonprofits last year — but we spent $130 trillion buying stuff

So at DoneGood we’re working to make it quicker, easier and more affordable for people to spend their dollars on brands they can believe in. We work to uncover the world’s coolest ethical and sustainable companies offering unique, high-quality products and to make it easier for us all to feel good about what our dollars are supporting.

Our community now includes more than 100,000 members and hundreds of mission-driven brands. Together DoneGood users have diverted hundreds of thousands of dollars away from the typical mainstream corporations to support brands that are making the world better.

But we’d like to make a much bigger impact — millions of members supporting thousands of good brands while pressuring the “big guys” to change their ways. We know this is possible. But we can’t do it alone.

Building on the Movement

We’re raising a new investment round to grow our impact—to help people looking for the unique, the simple, the natural, the good. And to support amazing people who took a chance starting a business committed to doing the right thing.

A selection of merchandise offered on DoneGood

As part of our fundraising round, we decided to launch an equity crowdfunding campaign. Equity crowdfunding is relatively new kind of investment platform made possible by government regulations that took effect in 2016. Equity crowdfunding is kind of like Kickstarter, but instead of just getting a gift in exchange for a donation, people can actually make a real investment in the company—truly become part of the company. We decided we’d like to invite real people who share our values to join the cause.

In talking with people at various equity crowdfunding sites, we learned that social impact companies tend to do well on their platforms. Community members at these sites often invest in a variety of startups each year and tend to prefer companies they believe will be successful and make the world better at the same time. Equity crowdfunding has democratized startup investing generally, but it may have opened the social impact investor universe even more.

Cullen Schwarz is DoneGood founder and Chief of Good Thoughts. This article originally appeared on B the Change, a Medium publication run by the nonprofit B Lab. Read the original here.

DoneGood is offering securities under Regulation CF and Rule 506(c) of Regulation D through SeedInvest  (“SI Securities”). The Company has filed a Form C with the Securities and Exchange Commission in connection with its offering, which is available online.

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Comments

  1. Great article as a crowdinvesting consultant I agree with the premise that crowdinvesting can a force for good that provides the opportunity for companies to transform their customers, investors, and brand advocates into the same person while raising funding for their enterprise. Combining B Corps with Crowdinvesting is a very powerful community capital mix.

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