EVERYTHING YOU NEED TO KNOW ABOUT EQUITY CROWD FUNDING

CROWD funding has long been a darling of entrepreneurs, inventors, and creatives.

Platforms like Kickstarter, Indiegogo, and even Patreon have launched the successful careers of a number of Australian change makers. By allowing interested patrons to donate money, sometimes in exchange for tokens of appreciation, these crowdfunding platforms allow emerging and growing brands, products, and businesses to raise early stage capital.

However, these types of platforms are not always appropriate for every company. In some situations, entrepreneurs with brilliant ideas might want to look to crowd funding as a capital raising tool, but require a more sustainable and reliable flow of income for their initial states of capital raising.

This is where the relatively new concept of equity crowd funding steps in to revolutionise the accessibility of capital raising.

Like traditional crowd funding, equity crowd funding involves tapping an huge number of interested parties who want to see an entrepreneur's idea leave the ground. However, instead of a t-shirt, patrons receive equity in the crowd funded company.

Recently, Australian laws were changed to legitimise equity crowd funding meaning platforms like Equitise can legally facilitate transactions allowing companies to give shares in exchange for capital. Read more

David Simmons - Business News Australia - 24 Nov 2017