Is Crowd Sourced Funding Equity Raising the Same as Crowdfunding

Empowering SMEs (Issue 039)

Crowd Sourced Funding Equity Raising is not the same as “Crowdfunding”.

  • Crowd Sourced Funding Equity Raising is governed by the Australian Government’s “Corporations Act” which specifies strict legal requirements for the company to abide by.
  • The company has to appoint an Intermediary from the businesses which have been appointed Crowd Sourced Funding Intermediaries by ASIC.
  • The company has to produce a Crowd Sourced Funding Offer Document (similar to a Prospectus) which contains significant amounts of information.
  • “Crowdfunding” is a popular term given to people or organisations raising money for particular needs or events.
  • “Crowdfunding” has virtually no government control or legislation covering its activities.
  • Common uses for “Crowdfunding” include:
  • raising money to assist a family with funeral expenses;
  • raising money to assist someone who has been injured in an accident;
  • raising money for an inventor who wants to raise a sum of money to finish a project. Sometimes the inventor offers the “crowd” sample products;
  • an employee raising money to pay for legal expenses incurred in a dispute with an employer.
  • There is no formal requirement on reporting the amount of money raised or the expenditure of that money within “Crowdfunding”.
  • A company cannot utilise “Crowdfunding” to raise share capital for the company.

Click here if you wish to learn more about Crowd Sourced Funding Equity Raising or go to our website: www.esssmallbusiness.com.au/crowdsourcedfunding/learnmore

We have discounted our Crowd Sourced Funding Equity Raising Products by 40% for the month of July 2019, please click here to view our special.

If you have any questions, please send and email to peter@essbiztools.com.au or telephone Peter on 1800 232 088.

Peter Towers

Do You Want More?

COMPLIMENTARY MATERIAL Click on the button below to access the following FREE material:

  • Copy of this transcript
  • Complimentary material

Download Free Content

News, ideas and tips helping small business with strategies to survive and thrive in today's economy.

Episode 039 - Is Crowd Sourced Funding Equity Raising the Same as Crowdfunding

If you wish to receive future editions in the Survival Hints for Small Business series, you can visit our iTunes – Podcasts - Survival Hints for Small Business page and subscribe to our podcasts. If you have any questions or suggestions on future items to be covered in Survival Hints for Small Business, please don’t hesitate to contact us.

Is Crowd Sourced Funding Equity Raising the Same as Crowdfunding

Latest News

Latest Survival Hints

Latest Empowering SMEs

Member's Menu

Contact Details

12 Eclipse Street, ROWES BAY, QLD 4810
(07) 4724 1118
Toll Free: 1800 232 088
sales@essbiztools.com.au