Crossing the line together. Source: marcfanell/Unsplash

Finance
Lois Maskiell

Cheat sheet: Equity crowdfunding in Australia, explained

Authors
Lois Maskiell
Funding
3 minute Read

Equity crowdfunding allows startups and growing companies to access capital online from a large number of small investors.

Unlike rewards crowdfunding — which exchanges donations for gifts — equity crowdfunding campaigns involve receiving money in exchange for ownership in the business itself.

Equity crowdfunding falls under the authority of the Australian Securities and Investment Commission and is supported by securities law.

In Australia, the first equity crowdfunding legislation was passed in May 2017, for unlisted public companies. By September 2018, the Australian government extended it to include private businesses, which allowed a far wider pool of businesses to raise capital using equity crowdfunding. 

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