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What should Should Shareholders, Company Directors and Managers know about Crowd Sourced Funding Equity Raising

Empowering SMEs (Issue 043)

  • What is in it for a company?
    • Ability to raise up to $5 million in a 12 month period direct from the public
  • This is not a loan therefore:
    • No loan application required
    • No security required
    • No personal guarantees required
    • No monthly repayments of principal and interest required
    • The company issues ordinary shares to the investors
  • What do you want to achieve for your company?
    • “Scale up”? – You will probably require cash to fund the process
    • Expand the business?
    • Acquire another business?
    • Implement your “big audacious idea”?
    • Overcome succession problems?
    • Repay loans?
    • Implement a commercialisation process for a new product, process or service when your company is too old or has too much income or expenditure to qualify as an Early-Stage Innovation Company?

These are some of the reasons why you might be interested in having a close look at the concept of utilising Crowd Sourced Funding Equity Raising to raise capital

  • What is the downside?
    • The company must have a minimum of two directors
    • You could end up with hundreds of additional shareholders – but most of them will only have a very small shareholding
    • The company’s Constitution will require some changes
    • The current shareholders will not own 100% of the company
    • But, this is part of “Wealth Creation”

You need to understand the process if you are going to be involved:

  • The selection of an Intermediary that your client is confident that they can work with;
  • The company has to prepare a Crowd Sourced Funding Offer Document therefore they will probably need you to assist them in this process – this document requires a significant amount of information to be disclosed.

This is not “Crowdfunding”.

All share applications must be processed via the Intermediary’s website.

The maximum investment for a “Retail Investor” is $10,000 in a 12 month period.

There is a 5 business day cooling off period for “Retail Investors”.

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 an email to peter@essbiztools.com.au or telephone Peter on 1800 232 088.

Peter Towers

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Episode 043 - What should Should Shareholders, Company Directors and Managers know about Crowd Sourced Funding Equity Raising

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What should Should Shareholders, Company Directors and Managers know about Crowd Sourced Funding Equity Raising

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