Equity crowd funding is finally available in Australia. From early 2018, everyday Aussies are able to invest directly into small companies. And that is incredibly good news for both parties.
Even if you have never been involved in a crowdfund, you probably know that there are websites you can go to crowdfund start up ideas. Websites like Pozible, gofundme, Kickstarter, and Indiegogo promote different start up ventures, including new companies and product launches and you can help them raise funds. Raising funds in Australia however does not allow supporters to actually invest in the company itself yet. What typically happens is that a supporter will either make a direct donation or forward purchase the Start Up company's products. There are countless examples of this practice, like Wattcost and Ettitude who forward sold signature products at lower prices to raise development funds.
Basically, the laws are changing to accommodate the new world order. From the last quarter of 2017, early 2018, everyday Aussies will be able to invest up to $10,000 directly into a startup in exchange for a stake or share in the company. Up until now, this hasn't been possible because the complex laws regulating traditional capital raising were completely over engineered for small companies and of course these laws were made at a time when no one had ever thought of capital raising on the web.Aussie crowdfunder Pozible has been lobbying and working with government, alongside a swag of others to get this new legislation into place. Pozible have launched a spin off called Birchal to specifically manage equity funding and you can sign up on their website to get early access and progress reports - whether you are a investor or a potential equity crowdfunder.