Frequently Asked Questions

What is Equity Crowd-Sourced Funding (CSF)?

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.

What is SME CrowdFunder?

SME Crowdfunder is an Australian company with an intermediary licence to operate an Equity Crowd-Sourced Funding (CSF) platform that assists established SMEs easily seamlessly source growth capital.

SME Crowdfunder brings investors and companies together, in a modern and efficient way through our online platform.

One of our key differences is that we focus on established SMEs with a track record and we support them with our Optimisation program to ensure the maximise the efficiency and valuation of the business.

How does Equity Crowdfunding (CSF) work?

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.

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