aiding investors to be crowd ready
Why invest via equity crowdfunding?
Investments in start ups, especially Australian start ups, has been the domain of professional investors. Equity crowdfunding democratises investment and gives you the opportunity to invest in something of value – Australian entrepreneurs and businesses.
Equity crowdfunding offers the medium to invest in startups at relatively lower cost than traditional methods. The entrepreneurs require less disclosure, the internet provides the cheaper medium and the cost savings are passed on to investors.
Potential for high growth:
Early stage investments offer the potential for higher returns than traditional investments, giving you the opportunity to invest in companies that are young and require capital. Your investment is likely to provide you with greater shareholding in the company than its listed alternatives.
You control your investment decisions, whereas traditional venture capital is a blind pool, and you can choose start ups, founders and offerings you believe in. Plus you will likely get some benefits relating to their product or service that non-shareholders would not otherwise be able to.
Holding a share in a listed company is nice and all, but being involved at the ground level with its founders and its future prospects is really what investing is about.
As an investor, you will be part of the 'crowd' of investors who will review, analyse and see the opportunity (or not) in an entrepreneur's business. Use the power of the crowd.
Whilst being the most overused word in finance, it does have its merits. Diversify across asset classes and consider equity crowdfunding. Then become your own venture capitalist by spreading the risk in more than one equity crowdfunded startup.
Let’s get a little parochial for Australian investors and a little educational for international investors:
- The fridge (because it’s bloody hot here)
- The notepad (in 1902, cardboard at the back, glue along the top and you have a notepad. 3Ms much vaunted post-it-note came some 66 years later)
- Surf life-saving reel (because people die in our waters)
- The pacemaker (because people die on our land)
- The tank (because it seems we can invent something to kill people in water or on land)
- Flame ionisation detector (accurate detection of air emissions)
- Black box flight recorder (if you can find it, you can find out)
- Power board (otherwise our walls would simply be electrical plugs. Probably should have patented it)
- Digital sampler (Peter Gabriel made the most of his purchase)
- Bionic ear (Steve Austin $6 million man, not so science fiction now - Cochlear, a nigh on $6 billion company)
- The CPAP mask (for sleep disorders and saving marriages)
- The winged keel (America’s Cup, anyone? https://www.youtube.com/watch?v=LB0WvpiUA_I)
- Frozen embryo baby (http://www.nytimes.com/1981/06/06/us/first-test-tube-twins-are-born-in-australia.html)
- Polymer note (because we like to take our Aussie cash notes for a swim and so it seems do 30 other countries)
- Polilight forensic lamp (ever watched a CSI episode?)
- Product activation (those annoying 16 digit product activation codes for software – yep, though for overseas people, it’s about the same number of digits on your phone to get through to Oz)
- Wi-Fi (although controversy surrounds who the inventor was, piles of money headed to Australia’s peak research body, CSIRO)
- Cervical cancer vaccine (awesome)
Please note that these businesses are not associated with CrowdReady in any way, but we really like them. They were all startups but have developed their businesses into some of Australia's most innovative companies.
being investment crowd ready
Under the proposed crowd sourced equity funding regulatory overlay, investors may have the following limitations:
- Investment caps for retail investors of $10,000 per offer per 12‑month period
- Signature of risk acknowledgement statements prior to investment, including that:
- investing in early stage companies is risky and the investor may lose the entirety of their investment;
- investors may not be able to sell their shares;
- the value of the investment may be diluted over time; and
- investors have complied with the investor caps.
- Unconditional right to withdraw for 5 days after accepting offer.
- Additional rights in relation to material adverse changes during the offer period.
You have the chance to invest directly and own shares in Australia's start ups without the intermediaries.
But you need to get in first.
If you would like to keep up to date with developments as they happen, please feel free to submit your details: