Foreign Companies Raising Capital in Australia

Total Page:16

File Type:pdf, Size:1020Kb

Foreign Companies Raising Capital in Australia FOREIGN COMPANIES RAISING CAPITAL IN AUSTRALIA Raising Equity Capital in Australia – What Do You Need to Know? This is the first in a series of publications to assist foreign companies to understand the fundraising regulatory landscape in Australia. This publication provides an overview of the disclosure and licensing regulatory regime for foreign companies seeking to raise equity capital in Australia. This publication does not extend to the listing regulatory requirements for foreign companies seeking a listing on the Australian Stock Exchange, which will be covered in a future publication. Overview of Australia’s Fundraising Laws Foreign companies seeking to raise capital from Australian retail investors are required to comply with Chapter 6D of the Corporations Act. The general proposition is that a company (or person) must not make an offer of securities or distribute an application form until a disclosure document (such as a prospectus – see further information below) for the offer has been lodged with the ASIC, unless the offer is exempt from disclosure. Where no exemption applies, the company must not accept an application for the issue (or transfer) of securities to Australian investors until seven days after lodgement of the disclosure document with ASIC. This seven day period is known as the “exposure period” and gives the market and ASIC an opportunity to consider the information in the disclosure document. ASIC may, and often does, extend the exposure period to 14 days. A key requirement is that the disclosure document must be worded and presented in a “clear, concise and effective” manner to assist retail investors to make informed investment decisions. ASIC has the power to issue a stop order if it considers that the disclosure document contains a misleading or deceptive statement or an omission of information required to be provided under the legislation (whether because of a new circumstance having arisen or otherwise). If ASIC imposes a stop order on the disclosure document, the offeror company is not allowed to offer, issue, sell or transfer its shares while that order is in force. Generally, before that occurs, however, the company will have the opportunity to discuss ASIC’s concerns and rectify any statements in the disclosure document by issuing a supplementary disclosure document (with the legislative consequences prescribed in the Corporations Act). Exemptions from Requiring a Disclosure Document The following is a summary of the key exemptions from the requirement for a company offering securities to have a regulated disclosure document under Chapter 6D of the Corporations Act (although this list is not exhaustive and legal advice should be obtained to determine whether an offer may be exempt or not): Offers to sophisticated An investor invests (pays) at least AU$500,000 for securities upon accepting the offer (which may include amounts investors (> investment already invested in the same class of securities). threshold): Offers to sophisticated An investor produces a certificate from a qualified accountant, no more than 6 months before the offer was made, investors (> wealth threshold): certifying that the investor has at least AU$2.5 million in net assets or has earned at least AU$250,000 per annum gross salary over the last two years (or a company or trust controlled by such investor). Offers to professional An investor who meets the definition of “professional investor” under section 9 of the Corporations Act investors: (for example, an Australian Financial Services Licence (AFSL) holder or their principal, an APRA-regulated superannuation fund with assets of at least AU$10 million; a listed entity or a related body corporate of a listed entity, or a person who controls gross assets of at least AU$10 million). Offers by AFSL holders to The offer is made through an AFSL holder or their principal who: experienced investors: • is satisfied on reasonable grounds that the investor to whom the offer is made has previous experience in investing in securities that allows them to assess the merits of the offer, the value of the securities, the risks involved in accepting the offer, their own information needs and the adequacy of the information given by the person making the offer; and • provides the investor a statement of their reasons for being satisfied of those matters and the Investor signs a written acknowledgement that the AFSL holder or their principal has not given them a disclosure document. Offers to retail investors within The offer is a “personal offer” to 20 or fewer retail investors and the total amount to be raised is no more than the small scale (AU$2 million) AU$2 million in a 12 month period. A “personal offer” is one that can only be made to a person whom the offeror offer exemption: is aware is likely to be interested in the offer, having regard to previous contact, a professional or other connection or statements or actions by the person indicating that they are interested in offers of that kind and it may only be accepted by that person. Offers by listed foreign The offer is made by a listed foreign company to 20 or less retail investors in Australia in any 12 months and the companies to 20 or less retail offer otherwise complies with ASIC Regulatory Guide 72 (foreign securities prospectus relief). investors in any 12 months: Offers to senior managers: The offer is made to a “senior manager” of the company (or a related body) or their spouse, parent, child, brother or sister or a body corporate controlled by any of these persons. Senior managers are persons (other than directors and secretaries of a corporation) who make or participate in making decisions that affect either the whole or a substantial part of the business of a corporation or have the capacity to affect significantly the corporation’s financial standing. Offers for nil consideration: The offer is for the issue or transfer of securities (excluding options) for no consideration. Offers of options for no The offer is for options over securities or options over unissued securities, where no consideration is to be paid for consideration: the issue or transfer of options and no consideration is to be provided for the underlying securities on the exercise of the options. Similarly, an option to subscribe for an unissued share does not require a disclosure document at the time of the offer. Offers connected to an eligible The offer is to employees of options or fully-paid shares (in respect of unissued shares) under an employee share employee share scheme: scheme which meets the requirements of ASIC Regulatory Guide 49 and the securities are in a class listed on ASX or other “approved foreign market”.1 Offers to existing holders The offer is of fully-paid shares to existing holders of securities in the company under a dividend reinvestment plan under a dividend reinvestment or bonus share plan. plan or bonus share plan: Offers under a regulated The offer is made by a bidder under an Australian regulated (Chapter 6) takeover offer or qualifies for conditional Australian takeover offer and ASIC relief as either a foreign scrip takeover offer in certain jurisdictions (e.g. Italy, Japan, Malaysia, Germany, certain foreign regulated Hong Kong, France, Canada, Netherlands, New Zealand, UK, US, Singapore, South Africa), where no more than offers: 10% of the bid class securities are held by Australian investors. In both cases, the offer must be accompanied by a bidder’s statement. Offers under a Part 5.1 scheme The offer is by an acquirer under a Part 5.1 scheme (that is, a scheme regulated and approved under Part 5.1 of of arrangement and certain the Corporations Act) or an offer of securities made under a foreign scheme of arrangement that is regulated in a foreign regulated schemes: similar manner to Part 5.1 (i.e. Hong Kong, Malaysia, New Zealand, Singapore, South Africa, UK). ASIC specific relief for a scheme of arrangement in other foreign jurisdictions may also be permitted in certain circumstances. Offers under certain foreign The offer is a renounceable or non-renounceable rights offer by a foreign entity of securities in the same class rights issues: which have been quoted continuously on an approved foreign exchange for at least 36 months, where the offer to Australian investors represents 10% or less of aggregate securities offered (by value) and the offer otherwise complies with ASIC Regulatory Guide 72. Can a Foreign Company Raise Funds from Australian Investors There is a prohibition against cold calling members of the public to sell Via an Australian Proprietary Limited Subsidiary? securities, subject to very limited exceptions, as follows: A foreign company may seek to raise funds from Australian investors • unsolicited offers may be made to sophisticated and professional through a subsidiary that is a proprietary limited company incorporated investors (see the first few exemptions in the above table) or under in Australia (i.e. a company with no more than 50 non-employee an eligible employee share scheme (see sections 736 (2) (a), (b) and shareholders) (Subsidiary) in the following limited circumstances: (e) of the Corporations Act); and • from existing shareholders and employees of the Subsidiary; and • a licensed securities dealer may offer listed securities by telephone to any person or may offer securities to any of their existing clients • from the general public, if the fundraising by the Subsidiary (who they have had as a client in the last 12 months) by whatever does not require a disclosure document under Chapter 6D of the communication means under sections 736 (2) (c) and (d) of the Corporations Act (i.e. it must qualify for one of the exceptions to Corporations Act respectively, subject, in each case, to applicable disclosure listed in the table above).
Recommended publications
  • Australian Private Equity and Venture Capital Association Limited
    16 February 2015 Mr Kurt Hockey Manager Financial System Assessment Unit Financial System and Services Division The Treasury Langton Crescent PARKES ACT 2600 Email: [email protected] Dear Mr Hockey, Submission on Crowd-sourced Equity Funding Discussion Paper The Australian Private Equity and Venture Capital Association Limited (AVCAL) welcomes the Government's announcement as part of the Industry Innovation and Competitiveness Agenda (II&CA) about the introduction of reforms to encourage crowd-sourced equity funding (CSEF) in Australia in order to provide startups with improved access to capital. AVCAL is the national association representing the private equity and venture capital industries in Australia. Our members comprise most of the active private equity and venture capital firms in Australia. These firms provide capital for early stage companies, later stage expansion capital, and capital for management buyouts of established companies. At the outset, it worth pointing out that AVCAL is supportive of the Government's plans to introduce a regulatory framework to facilitate the use of CSEF in Australia. The benefit to the broader economy of improving access to finance and capital for small business and startups is well documented. In the context of CSEF, it is apparent that other developed economies have already taken a number of steps to implement policy frameworks which support the use of crowd-sourced equity funding. Because of that, we believe it is vitally important that we remain focussed on positioning Australia to compete for the best entrepreneurial talent both domestically and from offshore. In our view, the implementation of changes to facilitate the use of CSEF should be developed around a set of policy objectives which seek to deliver a simple and cost-efficient framework that successfully aligns the interests of startups and CSEF investors.
    [Show full text]
  • Powering the Crowd Into the Future
    POWERING THE CROWD INTO THE FUTURE KEY LEARNINGS & RECOMMENDATIONS Davinia Cogan, Peter Weston POWERING THE CROWD INTO THE FUTURE KEY LEARNINGS & RECOMMENDATIONS FOR ENERGY ACCESS CROWDFUNDING AND P2P LENDING CONTENTS BIOS 3 EXECUTIVE SUMMARY 4 INTRODUCTION 6 1 STATE OF THE MARKET 8 2 THE 6 CAMPAIGN ARCHETYPES 12 1. PARTNERSHIP MODELS 15 CASE STUDY: TAHUDE FOUNDATION 16 2. ONE-OFF FUNDRAISERS 17 CASE STUDY: RAFODE 19 CASE STUDY: SOLARIS OFFGRID 20 3. MEGA-CAMPAIGNS 22 4. P2P MICROLENDING 23 CASE STUDY: EMERGING COOKING SOLUTIONS 24 5. ONLINE DEBT-BASED SECURITIES 26 CASE STUDY: SIMUSOLAR 27 CASE STUDY: AZURI TECHNOLOGIES 29 5.EQUITY CROWDFUNDING 31 CASE STUDY: TRINE 32 3 INTERVENTIONS TO CATALYSE FUNDING 34 4 CROWD POWER UPDATE 37 CONCLUSION 39 REFERENCES 41 This material has been funded by UK aid from the UK government; however the views expressed do not necessarily reflect the UK government’s official policies. Published December 2018 Design: www.dougdawson.co.uk Front cover by C.Schubert BIOS Davinia Cogan Peter Weston Davinia Cogan is the Programme Peter Weston is the Director of Manager of Crowd Power at Energy Advisory Services at Energy 4 Impact. 4 Impact. She runs the UK aid He manages a team of consultants funded programme, which explores that advises off-grid SMEs in Sub the role of incentives to stimulate Saharan Africa and helps them to donation, reward, debt and equity implement new business models crowdfunding in the off-grid energy and technologies. He is an expert sector in Sub- Saharan Africa and in power, renewables and off- South Asia.
    [Show full text]
  • Osservatorio Crowdfunding 1° Report Italiano Sul Crowdinvesting
    Osservatorio CrowdFunding 1° Report italiano sul CrowdInvesting Giugno 2016 Indice pagina Introduzione 5 Executive summary 7 1. Il crowdinvesting: definizioni e contesto 9 Definizioni metodologiche 9 Lo sviluppo del crowdfunding e i modelli utilizzati 9 Il crowdfunding in Italia 12 La filiera industriale in Italia 13 Focus sul crowdinvesting 15 L’ equity crowdfunding nel mondo 16 Il lending crowdfunding nel mondo 19 L’ invoice trading nel mondo 22 2. L’equity crowdfunding 25 La normativa di riferimento in Italia 25 I portali autorizzati 26 Le campagne presentate 29 Le imprese protagoniste 35 Gli investitori 41 Le prospettive per il futuro 44 3. Il lending crowdfunding 47 Il quadro di riferimento in Italia 47 I portali attivi 47 I modelli di business 49 I soggetti finanziati 51 I prestatori 56 Le prospettive per il futuro 58 4. L’invoice trading 61 Il quadro normativo di riferimento in Italia 61 I portali operativi in Italia 62 Le imprese finanziate 64 Gli investitori 64 Le prospettive per il futuro 65 La School of Management 67 Il gruppo di lavoro e i sostenitori della ricerca 69 1° REPORT ITALIANO SUL CROWDINVESTING 1 Copyright © Politecnico di Milano – Dipartimento di Ingegneria Gestionale pagina FIGURE Figura 1.1 Numero di piattaforme di crowdfunding attive a livello mondiale a fine 10 2014. Fonte: Massolution Crowdfunding Industry Report 2015 Figura 1.2 Volume di raccolta delle piattaforme di crowdfunding attive a livello 11 mondiale, dal 2013 al 2015. Dati in $ miliardi. Fonte: Massolution Crowdfunding Industry Report 2015 Figura 1.3 Flusso di raccolta delle piattaforme di crowdfunding nelle diverse aree 11 geografiche mondiali, dal 2013 al 2015.
    [Show full text]
  • Broken Confidences Sebastiaan Van Den Berg of Harbourvest Partners Are PE Players Losing Sleep Over Australia’S Super Fund Disclosure Rules? Page 7 Page 19
    Asia’s Private Equity News Source avcj.com February 25 2014 Volume 27 Number 07 EDITOR’S VIEWPOINT Bumper PE deal flow in 2013 flatters to deceive Page 3 NEWS Baring Asia, CalPERS, CDH, EQT, Fosun, GGV, Hopu, IDFC, IFC, INCJ, Kendall Court, Morningside, NSSF, Origo, Samena, Temasek Page 4 ANALYSIS Australia’s mid-market GPs wait patiently for a buyout rebound Page 16 INDUSTRY Q&A HESTA’s Andrew Major and QIC’s Marcus Simpson Page 11 Broken confidences Sebastiaan van den Berg of HarbourVest Partners Are PE players losing sleep over Australia’s super fund disclosure rules? Page 7 Page 19 FOCUS FOCUS Diversity in distress The collective spirit GPs adjust to evolving special situations Page 12 Crowdfunding gains traction down under Page 14 PRE-CONFERENCE ISSUE AVCJ PRIVATE EQUITY AND VENTURE CAPITAL FORUM AUSTRALIA 2014 Anything is possible if you work with the right partner Unlocking liquidity for private equity investors www.collercapital.com London, New York, Hong Kong EDITOR’S VIEWPOINT [email protected] Managing Editor Tim Burroughs (852) 3411 4909 Staff Writers Andrew Woodman (852) 3411 4852 Mirzaan Jamwal (852) 3411 4821 That was then, Winnie Liu (852) 3411 4907 Creative Director Dicky Tang Designers Catherine Chau, Edith Leung, Mansfield Hor, Tony Chow Senior Research Manager this is now Helen Lee Research Manager Alfred Lam Research Associates Herbert Yum, Isas Chu, Jason Chong, Kaho Mak Circulation Manager FROM 2006 OR THEREABOUTS, AUSTRALIA pace during the second half of 2013. A total of Sally Yip Circulation Administrator suddenly became the destination in Asia for GPs nine PE-backed offerings raised record proceeds Prudence Lau focused on leveraged buyout deals.
    [Show full text]
  • Jun Zhang (10742239) Msc
    To Which Extend Do Material Incentives Matter? A Study on Backers’ Motivation behind Crowdfunding Behaviour Master Thesis Student: Jun Zhang (10742239) MSc. in Business Administration - Entrepreneurship and Innovation Faculty of Business and Economics of UvA Supervisor: First Supervisor: Dr. G.T. Vinig Second Supervisor: Dr. W. van der Aa Date: 26 Jun 2015 (Final Version) Statement of Originality This document is written by Student Jun Zhang, who declares to take full responsibility for the contents of this document. I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it. The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents. Page 2 of 91 Contents Acknowledgement ..................................................................................................................... 5 Abstract ...................................................................................................................................... 6 1. Introduction ........................................................................................................................ 7 1.1 Academic Relevance ................................................................................................. 10 1.2 Managerial Relevance ............................................................................................... 11 1.3 Thesis Outline ..........................................................................................................
    [Show full text]
  • Girişimciler Için Yeni Nesil Bir Finansman Modeli “Kitle Fonlamasi - Crowdfunding”: Dünya Ve Türkiye Uygulamalari Üzerine Bir Inceleme Ve Model Önerisi
    T.C. BAŞKENT ÜNİVERSİTESİ SOSYAL BİLİMLER ENSTİTÜSÜ İŞLETME ANABİLİM DALI İŞLETME DOKTORA PROGRAMI GİRİŞİMCİLER İÇİN YENİ NESİL BİR FİNANSMAN MODELİ “KİTLE FONLAMASI - CROWDFUNDING”: DÜNYA VE TÜRKİYE UYGULAMALARI ÜZERİNE BİR İNCELEME VE MODEL ÖNERİSİ DOKTORA TEZİ HAZIRLAYAN ASLI VURAL TEZ DANIŞMANI DOÇ. DR. DENİZ UMUT DOĞAN ANKARA- 2019 TEŞEKKÜR Beni her konuda daima destekleyen, cesaretlendiren, güçlü olmayı öğreten, mücadeleden, öğrenmekten ve kendimi geliĢtirmekten vazgeçmemeyi ilke edindiren, sevgili babama ve rahmetli anneme, Sevgisini ve desteğini daima hissettiğim değerli eĢime, Tezimin her aĢamasında bana tecrübesi ve bilgi birikimiyle yol gösteren, ilgi ve desteğini esirgemeyen tez danıĢmanım Doç. Dr. Deniz Umut DOĞAN’a, Çok değerli görüĢleri ve yönlendirmeleri için Prof. Dr. Nalan AKDOĞAN’a, ÇalıĢma dönemimde destek ve yardımını benden hiç esirgemeyen Çiğdem GÖKÇE’ye ve sevgili dostlarıma, En içten duygularımla teĢekkür ederim. I ÖZET GiriĢimcilerin en önemli problemi finansal kaynaklara ulaĢmalarında yaĢadıkları zorluklardır. GiriĢimciler finansal sorunlarını çözmek için geleneksel finansman yöntemlerinden ve Risk Sermayesi, GiriĢim Sermayesi, Bireysel Katılım Sermayesi, Mikrofinansman gibi alternatif finansman modellerinden yararlanmaktadır. Günümüzde giriĢimcilerin gereksinim duydukları sermayeye ulaĢmak için kullandıkları yeni finansal yöntemlerden biri Kitle Fonlaması modelidir. ÇalıĢmada giriĢimcilik, giriĢim finansmanı ve Kitle Fonlaması modeli konusunda literatür taraması yapılarak ilgili kavramlara değinilmiĢtir. Dünya’da
    [Show full text]
  • The Crowdfunding Book
    Praise for The Crowdfunding Book: If you have a business dream and need a little (or a lot) of cash to get it going, Patty Lennon's insights will be invaluable. - Shawn Hull, Successful Crowdfunder and Owner, Hull’s Happiest Days Designs Until I read Patty Lennon's book, I always thought of crowdfunding as a way to raise money. Once I understood her approach I saw the tremendous marketing potential of crowdfunding. I can't think of a better or more cost-effective way to build a community of people who support you and your message. - Angela Lauria, President, The Author Incubator Patricia Lennon is the source for the crowdfunding industry. This book will help explore the topic and give a better understanding to all who are interested in learning more. - Amanda L. Barbara, Vice President, Pubslush Patty Lennon takes the mystery out of crowdfunding in The Crowdfunding Book. Her practical and engaging approach will help thousands of people launch successful campaigns and raise the funds to realize their dreams. - Brenda Bazan and Nancy Hayes, CoFounders, MoolaHoop THE CROWDFUNDING BOOK: A How-to Book for Entrepreneurs, Writers, and Inventors Patty Lennon The Crowdfunding Book: A How-to Book for Entrepreneurs, Writers, and Inventors Patty Lennon © 2014 Patty Lennon All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher and author. Reviewers may quote brief passages in reviews. Published by Difference Press, Washington DC Difference Press, and the Difference Press wax seal design are registered trademarks of Becoming Journey LLC.
    [Show full text]
  • Crowd Power – Success & Failure, the Key to a Winning Campaign
    CROWD POWER Success & Failure: The Key to a Winning Campaign Davinia Cogan and Simon Collings 1 CONTENTS 1.0 Executive Summary ...................................................................................................................................3 2.0 Introduction ....................................................................................................................................................5 3.0 The Layers of Success ..............................................................................................................................7 3.1 Donation .........................................................................................................................................................11 3.1.1 Choosing the Right Platform....................................................................................................................................................................11 3.1.2 The Campaign Period ..................................................................................................................................................................................13 3.1.3 Implementing Campaign Goals & Success into the Future .......................................................................................16 3.1.4 Q&A – Kenya Green Supply ..............................................................................................................................................18 3.2 Reward ..........................................................................................................................................................
    [Show full text]
  • Crowd Funding Summary
    Crowd Funding Crowd Funding | Definition : According to the Oxford Dictionary, crowd funding is defined as “the process of funding a project or venture by raising monetary contributions from a large number of people typically via the internet.” Crowd Funding | Background: The first instance of crowd funding occurred in 1997 when a British rock band funded its reunion tour through online donations from fans. Due to this band’s success, a website called ArtistShare became the first crowd funding website. Since crowd funding’s inception, crowd funding has grown at a 74% compounded annual growth rate and as of 2013, receives about 2 billion dollars of funding annually. In the United States, President Barrack Obama signed the Jumpstart Our Business Startups (JOBS) Act into law and in the US, this has legalized and equity crowd funding. In practice, new ventures typically offer different perks and products from the company in return for donations. These perks and products could be merchandize, equity, publicity, and other types of rewards and recognition. Crowd funding is one of the most powerful ways for entrepreneurs to earn funding for their ventures by having access to investors without extreme dilution of their company ownership. (Information retrieved from fundable.com) Crowd Funding | Controversy : Since crowd funding’s genesis, the programs, businesses, and ventures that have sought funding have begun to morph. More recently, people and organizations have sought to fund ventures such as supporting a private invasion to take Fallujah, Iraq back from Isis—and also another venture to support the police officer who shot Michael Brown in Ferguson, Missouri.
    [Show full text]
  • The Sharing Economy: Disrupting the Business and Legal Landscape
    THE SHARING ECONOMY: DISRUPTING THE BUSINESS AND LEGAL LANDSCAPE Panel 402 NAPABA Annual Conference Saturday, November 5, 2016 9:15 a.m. 1. Program Description Tech companies are revolutionizing the economy by creating marketplaces that connect individuals who “share” their services with consumers who want those services. This “sharing economy” is changing the way Americans rent housing (Airbnb), commute (Lyft, Uber), and contract for personal services (Thumbtack, Taskrabbit). For every billion-dollar unicorn, there are hundreds more startups hoping to become the “next big thing,” and APAs play a prominent role in this tech boom. As sharing economy companies disrupt traditional businesses, however, they face increasing regulatory and litigation challenges. Should on-demand workers be classified as independent contractors or employees? Should older regulations (e.g., rental laws, taxi ordinances) be applied to new technologies? What consumer and privacy protections can users expect with individuals offering their own services? Join us for a lively panel discussion with in-house counsel and law firm attorneys from the tech sector. 2. Panelists Albert Giang Shareholder, Caldwell Leslie & Proctor, PC Albert Giang is a Shareholder at the litigation boutique Caldwell Leslie & Proctor. His practice focuses on technology companies and startups, from advising clients on cutting-edge regulatory issues to defending them in class actions and complex commercial disputes. He is the rare litigator with in-house counsel experience: he has served two secondments with the in-house legal department at Lyft, the groundbreaking peer-to-peer ridesharing company, where he advised on a broad range of regulatory, compliance, and litigation issues. Albert also specializes in appellate litigation, having represented clients in numerous cases in the United States Supreme Court, the United States Court of Appeals for the Ninth Circuit, and California appellate courts.
    [Show full text]
  • Crossroads 2015
    Crossroads 2015 An action plan to develop a vibrant tech startup ecosystem in Australia April 2015 Contents Foreword ................................................................................................................................................. i What is StartupAUS? ............................................................................................................................... 1 Introduction ............................................................................................................................................ 2 State of the Australian startup ecosystem in 2015 ................................................................................. 4 What are “startups”? ............................................................................................................................ 10 Startups are not small businesses ........................................................................................................ 10 Why are startups important? ............................................................................................................... 11 Disrupt or be disrupted ......................................................................................................................... 13 Unicorns matter .................................................................................................................................... 14 Australian startups on a global stage ...................................................................................................
    [Show full text]
  • What Is Crowd Funding?
    Crowd Funding your Big Idea With Josh Apitz Youth In Business Workshops GOLD COAST 27-28 July SYDNEY 10-11th August Crowd Funding your Big Idea With Josh Apitz What Is Crowd Funding? • Allows you to raise funding for your idea, business or project, from anyone who wants to contribute • It allows individuals to make their ideas a reality, by leveraging the power of funding from the crowd • The crowd backs your idea with pledges of money. While the project owners ‘thank’ their backers with rewards… The Old Way To Source Funding? • Traditionally, if you needed money to start your new business or idea • Your would create a whole bunch of detailed planning • Including – Detailed business plan – Expensive market research – Detailed Prototypes – Preferably sales to show that your system works The Old Way To Source Funding? • Once you had spent all that time planning • You then had to find people with money willing to back you and your idea – Examples include – Banks – Angel Investors – Venture Capital Firms • All of which stack the odds in their favour – Because it is their money after all Why Crowd Funding? • Crowdfunding platforms turns the traditional model on its head • Instead of spending time and money pitching your business to investors – praying you find the right one • You let the investors come to you – • And make the offer or rewards suit you and your business Crowd Funding Categories Cool Examples of Crowd Funding • Amanda Palmer and her band • Quit her record label • The Grand Theft Orchestra • Launched a new album – 100% Funded
    [Show full text]