aiding entrepreneurs being investment ready for crowdfunding
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:
Also, to garner a better understanding of the background, framework and campaigns, check out our Blog.