What is equity crowdfunding?
Learn a bit more about what equity crowdfunding is, and how it could work for you.
Equity crowdfunding helps Australians fund the companies they care about. Our PledgeMe.Equity platform helps businesses harness the power of their crowd to raise capital without the need for a full prospectus.
How equity crowdfunding works is a company (like yours!) can exchange shares for investment from the general public. This means your crowd becomes shareholders and ambassadors for your company. Companies can raise up to $5 million in a 12 month period through a licensed intermediary platform (like us). This legislation came into force in Australia in 2017, and falls under the Corporations Act 2001 (Cth). The Australian Securities and Investment Commission regulate this new area of raising capital, and have released Regulatory Guide 261 (RG261) to help companies understand how it all works. .
Is Equity Crowdfunding for you?
Equity crowdfunding is for small to medium sized enterprises looking to raise capital to grow their business. Traditionally capital came from bank loans, angel investment, help from friends and family, or by dipping into your own savings. Equity crowdfunding is a new capital raising tool that’s more engaging and transparent - if you have a crowd. It can help Australian companies who have some traction, plans for growth, and excellent people, but need investment to scale their growth. If you’ve got a crowd and a solid plan to take your business to the next level then equity crowdfunding might be for you.
CrowdfundingU = $750 + GST for those seeking to raise less than $100,000, and $3,000 + GST for those seeking to raise more. This six session programme helps you prepare everything from your offer document through to your comms plan.
Success fee = 6% + GST of total raised if your goal is met by the deadline.
Example: A company successfully raises $300,000 through their crowd.
They’ll pay $3,000 + GST upfront and a $18,000 + GST success fee.