The crowdfunding revolution is coming to Australia. In April 2015 the Business Insider Australia, featured a story wrien by Alex Heber, regarding the impending raise of crowdfunding and how it was going to affect the Australian public and businesses. Here is a short snippet of what he wrote. If your would like to see the full arcle please go to; hp://www.businessinsider.com.au/a-crowdfunding-revoluon-is-coming-to-australia-heres-what- you-need-to-know-2015-4 Last year, (April 2015) taxi mobile payments app Ingogo announced it was hoping to raise up to $4 million of its latest investment round using crowdfunding plaorm Venturecrowd. The decision to raise up to one-third of its $12 million round through crowdfunding – a way of combining smaller parcels of investment into one larger capital pool, with the process typically enabled by a technology plaorm – shows how the fundraising method has become an important component of the investment environment. The recently-concluded Financial System Inquiry, led by David Murray, listed crowdfunding as one way to assist start ups and innovave businesses in Australia’s economy. The federal government is aiming to consult on draſt legislaon for regulaon in the middle of this year (2016) There are two basic ways crowdfunding works. The first is rewards-based crowdfunding, which allows people to contribute money to an as-yet unbuilt product but guarantees they will be among the first to receive it if the people behind the idea raise the money they need. The best-known plaorms for this are Kickstarter and Indiegogo, where two Australians with an idea for a beehive with a tap have sensaonally raised $US12.1 million this year.
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The crowdfunding revolution is coming to Australia. Digger May 2016/Article 4 May.pdf · The crowdfunding revolution is coming to Australia. In April 2015 the usiness Insider Australia,
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The crowdfunding revolution is
coming to Australia.
In April 2015 the Business Insider Australia, featured a story written by Alex Heber, regarding the
impending raise of crowdfunding and how it was going to affect the Australian public and businesses.
Here is a short snippet of what he wrote. If your would like to see the full article please go to;
“Very early-stage seed funding rounds are improving year-by-year and what we’re seeing, in parallel to that, is a
drop off of the slightly later stage funding rounds of between $2 million and $20 million.
“That’s where we need to be focusing most of our effort in addressing that challenge, because the so-called valley
of death, that’s the single biggest challenge of start ups.
That’s when they develop their concept, they turn it into a commercial reality and they are at that critical infliction
point where they need to start thinking about scale and global reach, bringing on more resources and starting to
feel and operate like a sophisticated business, it’s at that point that they start struggling here in Australia to attract
enough interest from potential investment.”
Paul Niederer, CEO of the Australian Small Scale Offerings Board, estimates about 90% of the transactions are done
on the rewards side, rather than equity.
“On the equity side, it’s very early days, we’ve been doing it since 2005, it wouldn’t be over $20 million a year on
the equity side of it,” he said. adding, “We’re really waiting for treasury to set some rules.”
As for where crowdfunding sits, Niederer said was an important mechanism which sits between founders using
credit cards or sourcing family money and when the company is ready for Angel investment.
End of excerpts from Business Insider Australia. Please see their web site for full article . Some dates changed to
bring it up to date.
The potential for the mining industry to take advantage of crowdfunding would seem obvious, with the changing times already creating project funding challenges, looking to Crowdfunding for alternative sources of funding for your next project could be the best business decision you’ll make all year.