Investor
A Wholesale Offer is an Offer made under section 708 and is only for Sophisticated Investors, learn more here.
The CSF regime contained in Pt 6D.3A of the Corporations Act allows proprietary companies (Pty Ltd) and unlisted public companies (‘issuers’) with less than $25 million in consolidated assets and annual revenue to make offers of ordinary shares to investors, through a licensed CSF intermediary’s platform (SMECrowdfunder), using a CSF offer document.
For comprehensive description of how the CSF regime operates please see RG261.
Equity crowd-sourced funding (CSF) is a way for companies to raise capital by offering equity (ownership) in their business to a large number of retail and sophisticated investors in return for a cash investment.
In Australia this process occurs through an online licenced intermediary/platform (SME CrowdFunder) who presents the offers online. The role of SME CrowdFunder is to ensure all offers listed on our platform undergo stringent checks (‘gatekeeper’ obligations) and we have provisions to handle all investment money to ensure our investors are protected.
SME Crowdfunder (T/A FUNDSITION), is an Australian Pty Ltd Company with an intermediary licence to operate an Equity Crowd-Sourced Funding (CSF) platform that assists established SMEs easily seamlessly source growth capital.
FUNDSITION brings investors and companies together, in a modern and efficient way through our online platform.
A Wholesale Offer is an Offer made under section 708 and is only for Sophisticated Investors, learn more here.
The SME CrowdFunder investment process takes as little as 15 minutes and only requires 100 points of ID and bank details.
At SME CrowdFunder we aim to make investing as easy as possible, we have a 3-stage process that involves:
Yes, all Australian residents over the age of 18 can now invest and foreign investment is also accepted if the verification for AML and KYC are met.
Australian regulations characterise all investors in either two types of categories:
Retail investors have slightly different rules governing how they invest in CSF companies, this includes:
Wholesale investors are not governed by these rules. If you’re still unsure about whether you are a retail or wholesale investor, please consult your accountant or licenced financial professional.
Since it involves investing in return for equity, if the business invested in succeeds, the value of the company increases and the shares owned will be worth more than what investors initially put in. If the business makes an exit at a higher value than invested, investors receive a return on their investment. Shares in unlisted companies offered through CSF platforms are highly illiquid and are typically held until a major liquidity event occurs (IPO, trade sale, takeover etc).
We take no fees from investors, our fees come from offering companies. The fees and any other financial interests in the company are disclosed on each offer page.
The government require that investors are verified and there is a small cost associated with that if you invest. You only do this once and it can be used for when you require other verifications.
$500 is the minimum investment per Offer Company for a retail investor and the maximum is $10,000 per investment per Offer Company, please check each of the offer pages for further details.
If you are a sophisticated investor, there is no limit on how much you can invest.
You will receive quarterly reports from the Offer Companies you have invested, as your shares sit on a share registry, the communication will be via the registry.
Each CSF offer must include a minimum amount they are looking to raise (‘minimum subscription’) and a maximum they are looking to raise (‘maximum subscription’) up to a total of $5,000,000.
A CSF offer closes after the earlier of the following times:
The offer is open for a set time before a specified close date and during this time it must raise at least the minimum subscription amount. If it does not raise the minimum subscription the offer will be declared unsuccessful and funds will be returned to investors. The refund will be paid back into the bank account from which you transferred the money.
If the offer has successfully reached the minimum subscription amount at the close date it will be considered successful and shares will be issued to investors (cash distributed to company). If an offer completes successfully, the offering company will issue your share certificate as soon as practicable after closing. Investment funds will only be released to the offering company after the share certificates have been provided.
The CSF regime contained in Pt 6D.3A of the Corporations Act allows proprietary companies (Pty Ltd) and unlisted public companies (‘issuers’) with less than $25 million in consolidated assets and annual revenue to make offers of ordinary shares to investors, through a licensed CSF intermediary’s platform (SMECrowdfunder), using a CSF offer document.
For comprehensive description of how the CSF regime operates please see RG261.
To be considered a sophisticated investor you must meet the following requirements:
Prior to investing in a Wholesale Offer or a Crowdfunding Offer above the retail cap of $10,000, you will need to provide a Sophisticated Investor Certificate from your accountant and you need to make your initial investment within six months of obtaining your certificate. More info from ASIC
SME CrowdFunder only lists established SMEs who are looking for growth capital. These companies have typically less risk than startups and early stage tech companies. We are the only CSF platform that specialises in established SMEs.
Through SME CrowdFunder, investors get access to businesses that are private (or unlisted public companies) that until recently have largely been inaccessible to the general public. This change is now possible due to the recent updates in the investment regulatory landscape in Australia that allows all adult Australians to invest via CSF.
Yes, all investment carries some risk, please see risk warning below.
Equity Crowdfunding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of ventures is speculative and carries high risks. You may lose your entire investment, and you should be in a position to bear this risk without undue hardship. Even if the company is successful, the value of your investment and any return on the investment could be reduced if the company issues more shares. Your investment is unlikely to be liquid. This means you are unlikely to be able to sell your shares quickly or at all if you need the money or decide that this investment is not right for you. Even though you have remedies for misleading statements in the offer document or misconduct by the company, you may have difficulty recovering your money. There are rules for handling your money. However, if your money is handled inappropriately or the person operating this platform becomes insolvent, you may have difficulty recovering your money. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.
Offer companies will offer ordinary shares through the platform. Your rights as a shareholder will be outlined on the offer page of the transaction. If you require specific details relating to the shares offered these will be detailed in the documents attached to the offer.
SME CrowdFunder is constantly listing new opportunities on our investment page.
All Offer Companies on our page are carefully screened, undergo rigorous due diligence and also have to undertake our specialised optimising program that assists them to grow and develop. Through this process we ensure our investors get access to only the best companies.
If you are a retail investor you have the right to withdraw your application under this Offer. This must occur within the Cooling-off Period (five business days of making your application) You must withdraw your application by going to the Offer Company profile page and clicking the Withdraw this Offer button.
All equity crowdfunding platforms are required by law to be licenced by the Australian Securities and Investment Commission (ASIC).
SMECrowdfunder Pty Ltd is authorised and licensed by ASIC.
Equity crowd-sourced funding (CSF) is a way for companies to raise capital by offering equity (ownership) in their business to a large number of retail and sophisticated investors in return for a cash investment.
In Australia this process occurs through an online licenced intermediary/platform (SME CrowdFunder) who presents the offers online. The role of SME CrowdFunder is to ensure all offers listed on our platform undergo stringent checks (‘gatekeeper’ obligations) and we have provisions to handle all investment money to ensure our investors are protected.
Every business has their own reason to use CSF to raise capital, we suggest you speak with your financial advisor to decide if CSF is right for your company.
Below is a selection of reasons companies choose CSF:
Prior to launching on our platform, we require that each company undergoes an onboarding process that is shown in the diagram below, the stages are as follows:
To begin the onboarding process, please fill in the Expression of Interest Part 1 form
As part of the CSF capital raise you will have to issue new fully-paid ordinary shares in return for capital. This will result in current shareholders of the company diluting their current ownership percentage.
The amount of dilution is dependent on your company valuation. As part of our on-boarding issue we will assist with achieving a fair valuation.
We are excited that you are ready, please fill in the Expression of EOI Intro form.
The CSF regime contained in Pt 6D.3A of the Corporations Act allows proprietary companies (Pty Ltd) and unlisted public companies (‘issuers’) with less than $25 million in consolidated assets and annual revenue to make offers of ordinary shares to investors, through a licensed CSF intermediary’s platform (SMECrowdfunder), using a CSF offer document.
For comprehensive description of how the CSF regime operates please see RG261.
A Wholesale Offer is an Offer made under section 708 and is only for Sophisticated Investors, learn more here.
We can help you determine your eligibility under the CSF regime and our own platform requirements. Yo can start the process by filling out the questionnaire on the Raise page.
Some of the key legal requirements include:
Additionally, not all Companies are suited to raise capital through CSF and to prevent them embarking on a fruitless exercise we also impose additional criteria to launch on our platform.
Companies can raise up to $AUD 5,000,000* via CSF in a 12-month period, you can also only have one CSF offer open at any time.
*This cap includes any money you may have raised in the last 12 months from other CSF offers, small scale personal offers, or offers made via an AFS licensee. It doesn’t include funds raised under offers that do not otherwise required disclosure under 708 of the Corporations Act.
We require a minimum of $800,000 to be raised through the platform.
The fees with FUNDSITION are broken into 3 key components:
Once both parties are satisfied the business is ready, then you move to the Offer stage:
Full details of the fees and charges that an Offer Company will need to pay are contained in the Hosting Agreement.
Equity crowd-sourced funding (CSF) is a way for companies to raise capital by offering equity (ownership) in their business to a large number of retail and sophisticated investors in return for a cash investment.
In Australia this process occurs through an online licenced intermediary/platform (SME CrowdFunder) who presents the offers online. The role of SME CrowdFunder is to ensure all offers listed on our platform undergo stringent checks (‘gatekeeper’ obligations) and we have provisions to handle all investment money to ensure our investors are protected.
To FUNDSITION
As subscribers to our website there will be some information on wholesale offers, by proceeding, you are agreeing to the warning:
As subscribers to our website there will be some information on wholesale offers, by proceeding, you are agreeing to the warning:
To FUNDSITION
Crowd-sourced funding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of ventures is speculative and carries high risks. You may lose your entire investment, and you should be in a position to bear this risk without undue hardship. Even if the company is successful, the value of your investment and any return on the investment could be reduced if the company issues more shares. Your investment is unlikely to be liquid. This means you are unlikely to be able to sell your shares quickly or at all if you need the money or decide that this investment is not right for you. Even though you have remedies for misleading statements in the offer document or misconduct by the company, you may have difficulty recovering your money. There are rules for handling your money. However, if your money is handled inappropriately or the person operating this platform becomes insolvent, you may have difficulty recovering your money. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.
SME CrowdFunder Pty Ltd