Investors poured more than $71 million into 89 companies via crowd-sourced funding (CSF) in 2021, with the total raised up 140%, year-on-year, and the investments number jumping by 213%. Nearly a third of that figure ($21m, 30%) flowed in the final quarter of FY2021 thanks to a series of record raises.
There are multiple ways to fund your business ranging from personal savings, sweat equity, friends/family, consulting work and more formal capital rasiing through venture capital and investment firms. In the last few years, crowdfunding has also become a viable option for certain types of businesses.
Unlisted Australian based businesses, with revenue under $25m, are able to make public offers for crowdfunding up to $5m within a 12-month period. There can be limits depending on whether the company wants to target sophisticated high-net wealth investors or retail investors (up to $10,000) and the level of detail they want to prepare up front.
Crowdfunding helps businesses take advantage of situations where there is a wide reach of interest to people who are limited to smaller investments. Typically they are B@C businesses where the investors may be customers, prospects or have a personal attachment to the business or the problem it is trying to solve.
If you want to learn more about Crowdfunding, get in touch with your account manager and we can have a discussion about whether or not it makes sense for your business.
