OVER 30,000 PEOPLE HAVE ENDORSED CROWD SOURCED FUNDING EQUITY RAISING BY INVESTING

Empowering SMEs (Issue 044)

The Crowd Sourced Funding Equity Raising Scorecard produced by ESS Small Business / ESS BIZTOOLS as at 31 July 2019 has identified that 31,141 investors have invested an average of $1,207 each in the 44 companies that have raised $37,586,246. (Click here to view the Scorecard)

This uptake indicates that after a slow start Crowd Sourced Funding Equity Raising is starting to raise much needed capital for small businesses and medium-sized enterprises operating their businesses all over Australia.

Crowd Sourced Funding Equity Raising has been established in Australia following amendments to the Corporations Act by the Australian Government.

Proprietary limited companies are able to utilise Crowd Sourced Funding Equity Raising if they satisfy some basic tests including:

  • Group turnover under $25 million per annum
  • Group asset value under $25 million
  • Not listed on a stock exchange anywhere in the world

Eligible companies are able to raise up to $5 million in a 12 month period and if there is market support the company could raise further capital of up to $5 million annually in the following years.

To raise capital as a Crowd Sourced Funding Equity Raising Company the company has to “get its house in order” relative to the preparation of:

  • Business Plan
  • Budgets and Cash Flow Forecast
  • Company valuation
  • Share price determination
  • Identification of the company’s vision

These documents are all required to facilitate the preparation of the Crowd Sourced Funding Offer Document which is the de facto prospectus which has to be approved by the Crowd Sourced Funding Intermediary to be listed on the Intermediary’s website which is where the capital raising function is conducted.

Company directors, managers, shareholders who are contemplating the benefits of raising share capital rather than trying to negotiate to borrow money for the company’s expansion need to gain an understanding of the complete Crowd Sourced Funding Equity Raising process including an understanding of the role, responsibilities and powers of the Crowd Sourced Funding Intermediaries.

Most companies will find it desirable to get assistance from their accountant or if their accountant is not able to assist from an accountant/business advisor who has an understanding of the various components within Crowd Sourced Funding Equity Raising.

ESS Small Business has produced a unique series of Crowd Sourced Funding Equity Raising articles to assist company directors, managers, shareholders to obtain an understanding of this significant improvement for business financing for small and medium sized business operators.

This process saves companies mortgaging assets, directors entering into personal guarantees with the lender and the monthly repayment of principal and interest on loans.

We are presenting a free webinar examining “Crowd Sourced Funding Equity Raising from a Small Business/Medium Sized Enterprises Viewpoint for Directors, Managers and Shareholders” on Tuesday, 20 August 2019 at 10.00am AEST. To register please click here.

You can obtain more information by visiting our website specifically created to assist small business and, medium-sized enterprises owners, shareholders, directors and managers have an understanding of this new financing facility at www.esssmallbusiness.com.au/crowd sourced funding/learn more.

Whilst on our website you are invited to review our “40% Discount Promotion” for the month of August 2019 on Crowd Sourced Funding Equity Raising articles and other articles to assist in running a business and you could register for a free copy of our White Paper on Crowd Sourced Funding Equity raising..

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

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Episode 044 - OVER 30,000 PEOPLE HAVE ENDORSED CROWD SOURCED FUNDING EQUITY RAISING BY INVESTING

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OVER 30,000 PEOPLE HAVE ENDORSED CROWD SOURCED FUNDING EQUITY RAISING BY INVESTING

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