We're pushing the limits of crowdfunding in more ways than one to level out the field. Firstly, companies can circumvent the traditional channels of finance and raise capital in a space traditionally limited to startups at concept stage. Secondly, it lets anyone own a share of a company in just four clicks, from small scale to macro level.
Founded by a team of trailblazers in 2017, the catalyst was new legislation making access to crowd-sourced equity funding easier in Australia. We jumped on the opportunity to launch a concept that directly connects innovators and forward-thinking investors - taking VC funds, banks and brokers out of the equation.
The world is quickly evolving and investing shouldn't be bound by traditional industries, rules or pathways.
If you're looking to take the next step, get in touch with us.Contact us
Put simply, crowdfunding is the process of raising money from a large number of people to fund a project or idea.
After a very long wait, the Crowd-sourced Funding Act 2017 is finally here. The rest of the world has been able to play in this space for years, and Australian investors can finally participate in equity crowdfunding too.
The new legislation provides a regulatory framework for Crowd-sourced Equity Funding (CSEF) and enables a large number of individuals to make small financial investments in exchange for an equity stake in an enterprise. Under this legislation, unlisted public companies can raise up to $5 million from investors each year.
Unlike traditional capital raising (where enterprises must knock on doors endlessly), web-based crowdfunding means they can approach thousands of potential investors instantly. These innovative enterprises can now bypass venture capitalists and angel investors entirely and pitch their opportunity straight to the crowd who can provide the capital they need.
Traditionally, a tight-knit group of high net worth individuals held the keys to the investment arena. Angel investors and capitalists were the gatekeepers, and they were notoriously particular with whom they let in. Far too many ideas and opportunities were simply tossed aside as they didn't conform to the VC model appetite.
Crowdfunding has unlocked the gate and put funding for innovation in the hands of the crowd.Download the guide
Faster access to funding
Until now, getting funding from venture capitalists, banks and accredited investors took time – a lot of time. Months and even years is the standard timeframe for access to these kinds of investments. With equity crowdfunding platforms, your idea is live for up to 60 days and if the desired funds are raised, you receive them within 30 days.
An active crowdfunding campaign is an excellent way to introduce your overall mission and vision to the market. It means that your venture can receive thousands of organic visits from unique users and potential investors. Crowdfunding also unlocks opportunities for startups to create new relationships with their investors.
Early movers advantage
Enterprises can test the waters, and see if their idea is likely to be well received, before spending huge amounts of money ramping up production. The crowd will ultimately invest in products or ideas they see succeeding. If people don’t invest, it could be an indicator that people also won’t buy your product or service.