Coralus founder Vicki Saunders with Theresa Gattung, who launched the network in NZ. Photo / Supplied
Coralus founder Vicki Saunders with Theresa Gattung, who launched the network in NZ. Photo / Supplied
Coralus, a global network that funds startups led by female and non-binary founders, says it’s achieved its goal of becoming a “perpetual fund” in New Zealand.
At the same time, Theresa Gattung, who set up Coralus in NZ, is passing on the baton after five years heading the local operation- which is shifting to a collective leadership model.
Coralus (formerly SheEO) selects five startups a year to get a no-interest loan, which is paid back in four instalments over five years.
The money is crowdsourced from activators, who have previously chipped in $92 per month or $1104 per year. There are now hundreds of activators in NZ. Many are successful entrepreneurs, who also offer advice and access to their broader networks.
Coralus founder Vicki Saunders said under the perpetual fund model, $1.3 million is in circulation.
As startups pay it back, the money is “recycled” and loaned to new recipients.
“That money will just keep rolling forward for generations,” Saunders told the Herald.
Around 95 per cent of the money is paid back, Saunders said. She attributed that success to section criteria, which include revenue generation benchmarks.
Over the past five years, Coralus has helped firms including Havelock North-based disruptive online accountancy business Beany; Chia Sisters (aka Nelson sisters Chloe and Florence van Dyke, who champion the living wage and solar power as they produce their line of healthy drinks); Better Packaging (where founders Kate Bezar and Rebecca Percasky are offering an alternative to plastic with a range of biodegradable and home-compostable courier satchels, ziplock bags, and custom-branded packaging; and Hello (whose founders Mary Bond and Robyn McLean have sold their sustainable menstrual cup into Countdown locally, plus various international retailers.
Gattung said the $1.3m could increase as new activators come onboard. A new “koha” model lets activators choose their level of monthly contribution. The former Telecom boss and MyFoodBag co-founder said the no-interest loans were just part of the package. Recipients also received mentorship, plus pro bono services in areas like legal advice and PR.
Coralus focuses on diversity, with 32 per cent of the ventures it has supported since 2017 led by women of colour and 25 led by wāhine (Māori women). Gattung said she and other activators had sought a diverse range of founders who met the fund’s performance criteria.
Saunders said while startup founders can nominate themselves, Coralus’ network of hundreds of activators also act as scouts.
Beyond the diversity focus, they’re also looking for “entrepreneurs who have phenomenal businesses that are solving big challenges that we’re facing on the planet, working on sustainable development goals”.
“So every business is strongly purpose-led,” Saunders said.
“I’ve been involved with Coralus since pre-launch and over the five years it’s been actively running in New Zealand, I have met and supported so many fantastic wāhine-led start-ups. I’m a huge believer that, to promote meaningful change, we must equip a diverse group of people with skills that enable them to excel in business, as an entrepreneur and in life,” Gattung said.
“Coralus has very much hit its stride in the New Zealand market. Now that we’ve met our milestone of a perpetual fund, I am confident to hand the reins over to the next New Zealand leader and can’t wait to see what they do with this opportunity.”
Gattung said although things were improving there was still a keen need for Coralus. It was harder for women-led startups to access capital than early-stage companies led by a husband-and-wife team or a mixed-gender executive, she said.
And recent challenging events had added extra fission. For example, the Chia Sisters’ retail sales dried up as Covid lockdowns hit, so Coralus provided funds and expertise to help them quickly bolster sales online.
“My journey in supporting women and girls is far from over,” she said.
“Through my Gattung Foundation I will continue to address inequalities for women and girls and help make a difference. And in my capacity as funder of the University of Auckland Theresa Gattung Chair of Women in Entrepreneurship, I will also continue to help foster entrepreneurial women and equip graduates with hard-pegged business skills.”
Gattung has also chipped in capital for Maker Partners, a new venture capital fund whose partners include former Telecom colleagues Rod Snodgrass and Marko Bogoievski - the latter better known recently for his stint running Morrison & Co. Maker shares some of Coralus’ mindset. Its earlier investments include $1m in conscious women’s fashion brand Paris Georgia and $1.6m in non-synthetics fragrance company Abel Odor, founded by former winemaker Frances Shoemack.
Startups and activators can register for Coralus via coralis.world.
Sisters Angela and Theresa Gattung recently formed the Gattung Foundation and plan to give away millions of dollars in the coming years. Photo / Babiche Martens
