Equity Crowdsourced Funding
in Australia

What is Equity Crowdsourced Funding (CSF)?

Equity Crowdsourced Funding (CSF) is an innovative fundraising method that allows startups and small businesses to raise capital by offering equity shares to a large number of investors via an online platform.

This approach enables companies to seek funding from the general public instead of relying solely on traditional sources such as banks, venture capitalists or angel investors.

CSF regime allows eligible unlisted public companies and proprietary companies to raise up to $5 million per year through a CSF intermediary.

Eligibility and Requirements

Company Structure

Proprietary company (Pty Ltd) or an unlisted public company.

Financial Limits

Consolidated gross assets and annual revenue less than $25 million.

Location    

Principal place of business in Australia, with a majority of directors residing in Australia.

Directors

Proprietary companies must have at least 2 directors; unlisted public companies at least 3 directors.

Non-Investment Purpose

Companies must not have a substantial purpose of investing in other companies, entities, or schemes.

Not Listed

Not listed on any financial market in Australia or overseas.

Benefits of CSF

Access to a diverse investor base

Community Building

Powerful Marketing

Alternative Funding Source

Key Features of the CSF Regime

Direct Shareholding

Investors hold shares directly in the company

Ordinary Shares

All shares issued are new fully-paid ordinary shares with
voting rights

Shareholder Cap Exemption

CSF shareholders do not count towards the 50 non-employee
shareholder cap for proprietary companies

Annual Reports

Companies must provide shareholders with an annual financial report and directors' report

No Audit Requirement

Small proprietary companies are exempt from audit requirements
until they raise more than $3 million through CSF

Related Party Transactions

 Proprietary companies using CSF are subject to rules on
related party transactions

Takeover Rules Exemption

Proprietary companies with CSF shareholders are exempt
from takeover rules

Share Register Maintenance

Companies must maintain information about CSF shareholders
on their share register

Advertising

CSF offers can be advertised in accordance
with regulations

Disclosure Document

Companies must prepare and publish a CSF offer document with comprehensive information about the business, financial statements, and offer terms

Ready to Raise Capital?

Equity Crowdsourced Funding offers a unique opportunity to secure the capital your startup needs while building a community of dedicated supporters.

If you’re ready to embark on your fundraising journey, contact us to learn how we can help you connect with a diverse group of enthusiastic investors.