aiding entrepreneurs being investment ready for crowdfunding

 
CrowdReady assists entrepreneurs in becoming businesses ready for crowd sourced equity funding. We are independent, we are experienced and we are crowd ready. Crowd Sourced Equity Funding is about to be a reality in Australia. Prepare your business now to become crowd (and investment) ready
 

Crowd Sourced Equity Funding (CSEF) is expected to be a reality in late 2017 and entrepreneurs that wish to use this capital raising medium should begin their preparation now by contacting CrowdReady. We can assist with:

  • general advice in corporate structures including shareholder agreements, company constitutions and business establishment;
  • providing a better understanding of the capital raising process, both from a legal and an entrepreneur's perspective;
  • in depth understanding of equity crowdfunding in Australia, and your roles and responsibilities;
  • understanding the venture capital process and making reasonable judgements regarding your business' valuation; and 
  • assisting with your campaign, from preparation to launch to closure; 

As a summary of the current regulatory regulations for entrepreneurs (or Issuers) are as follows:

  • Issuers must be incorporated as a public company in Australia.
  • Limited to certain small enterprises that have not raised funds under existing public offer arrangements.
  • Relief from certain public company compliance costs would be available to newly registered or converted public companies. Reliefs include: 
    •  exemptions from disclosing entity rules; 
    • allowing annual reports to be only provided online; 
    • exemption from holding an annual general meeting (AGM); and 
    • exemptions from the need to appoint an auditor and have financial accounts audited, subject to a cap of $1 million raised from CSEF or under a disclosure exemption.
  • Exemptions will be available for a period of up to five years, subject to annual turnover and gross assets thresholds of $25 million (excepting the audit exemption).
  • Issuer may raise up to $5 million in any 12‑month period, inclusive of any raisings under the small scale offerings exception but excluding funds raised under existing prospectus exemptions for wholesale investors.
  • Permitted securities are one class of fully paid ordinary shares per CSEF offer. All shares in a particular CSEF offer must have the same price, terms and conditions.
  • Reduced disclosure requirements, including a tailored CSEF disclosure document. Required disclosures will relate to: 
    • facts about the company and its structure, including financial statements; 
    • facts about the CSEF raising; and 
    • mandatory risk warnings.

If you would like to keep up to date with developments as they happen, please feel free to submit your details:

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Also, to garner a better understanding of the background, framework and campaigns, check out our Blog.