Learn about crowd sourced equity funding

Crowd sourced equity fundingAlthough creative and entrepreneurial crowdfunding projects tend to receive the most media coverage, when it comes to people-powered business, equity-based crowdfunding has attracted much interest.

The Australian Government’s Corporations and Markets Advisory Committee (CAMAC) took in feedback for a discussion paper about crowd sourced equity funding and held meetings with respondents in the first quarter of 2014. In May 2014 they released their report and this is available from their website.

The CAMAC report into Crowd sourced equity funding sets out ‘a detailed regulatory blueprint for the stimulation of the innovative start-up and other small-scale enterprise sector of the Australian economy through internet-based funding’.

The Commercial Law Association of Australia has brought together a range of speakers to inform their members (and non-members – all are welcome) about the implications of crowd sourced equity funding.

Held for half a day on Friday 25 July 2014 in the Dixson Room at the State Library, the event costs $295 for members, $355 for non-members.  You can find out more about the event here, or book in here.

Without having the benefit of knowing all the speakers I do know Paul Neiderer from ASSOB, as he’s been very helpful when writing Crowdfund it! Paul is the CEO of Australian Small Scale Offerings Board (ASSOB) which has been facilitating funding from retail investors for over eight years and has raised funds of more than A$138 million for over 300 Australian predominantly startup companies. ASSOB was the worlds first equity funding platform, and one of the most successful, as acknowledged in the World Bank Report Crowdfunding’s Potential for the Developing World, published October 2013.

It will also be very interesting to hear about the CAMAC report into crowd sourced equity funding.

Here’s the program.

8.30am Registration
9.00am Welcome from the Chair — Dr Terry Cutler, Principal, Cutler and Company; Chair, CSIRO Chile
9.10am ASIC ASSOB approval and history of equity raisings — Paul Niederer, CEO, Australian Small Scale Offerings Board (ASSOB)
9.50am The ASIC/ASX regime: regulatory arbitrage between Australia and New Zealand — Andrew Macpherson, Principal, Macpherson Greenleaf
10.30am Morning tea
11.00am NZ equity crowd funding regulation: experience to date — Bradley Kidd, Partner, Chapman Tripp
11.40am The CAMAC Report: a way forward in Australia — John Kluver, Executive Director, CAMAC
12.20pm Questions
12.30pm Close

Anna Maguire, July 2014

One thought on “Learn about crowd sourced equity funding

  1. The Future of Equity Crowdfunding

    Invest directly in innovative consumer web shops
    A unique Dutch initiative: equity-based crowd funding for web shops.

    On September 4th 2014, StoreCorporation will start a unique initiative to invest directly in fast-growing privately-owned web shops.

    Crowd funding is no longer a new concept for web shops, but private individuals directly co-owning multiple web shops through investment is.
    The acquisition of capital with a large mass of small investors is an innovative form of (online) financing with incredible potential. StoreCorporation crowd funds differently; here, you participate directly in the share capital of the enterprise and its web shops.

    Direct investment in privately-owned businesses is usually a cumbersome affair; every transaction must pass through a notary and the drafting of official contracts is required.

    StoreCorporation has chosen a simpler path; one that is fully covered legally and is unopposed by the Dutch financial supervisory authorities (AFM and DNB). Now, investing in an as of yet privately-owned business is a piece of cake.

    What is the secret to this simplicity? The StoreCorporation has chosen to utilize a tried and true Dutch legal form: the co-op (Cooperatie U.A.). This is a form where its members are in charge and participate in the capital, but without a larger amount of accountability than the invested amount of money.

    Equity-based crowd funding for web shops
    How does it work? After a successful crowd funding, the StoreCorporation establishes an investment co-op co-op (Cooperatie U.A.), which gains a share capital in the company.

    The investors all gain membership of that investment co-op, which eventually becomes the owner of all the shares of the company. Transparency of the organization is safeguarded by a graduated system of ownership and influence. One can compare it to market-listed stock certificates, where the investor owns the certificate while the actual share is held by an administration office. The difference is that with StoreCorporation, investors have more input and influence than holders of stock certificates because they are co-owners of the investment co-op who determine its policies, have full voting rights and selects its board of directors.

    Limited share risk
    Of course there is the usual risk that comes with undertaking and applies to all investments in companies. If the StoreCorporation can no longer meet its obligations and goes bankrupt, its investors will lose their invested money. However, because the StoreCorporation invests in more than ten web shops, the risk is minimalized.

    Invest directly in innovative consumer web shops
    Also of interest is the attention playing in the back ground, for example from abroad. We have tested our story on several crowd funding web sites and the attention we have gained is remarkable. Several groups have already come forward to become shareholders in the StoreCorporation.

    At StoreCorporation Crowdfunding, anyone can invest and therefore profit of the present and future growth. One share can be bought for 20 euros, so truly everyone can come on board and profit from the growth in web shops and this new way of doing business!

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