New ASIC legislation allows publicly unlisted companies to raise funds from ‘the crowd’ in order to support their business ideas. With eligible companies able to raise up to $5 million per year, this could be a real gamer-changer for Australian business.
Industry observers believe that Australia will follow international trends and experience massive growth in equity crowdfunding. Investors must be wary of increased risks, as start-ups are not liquid companies. While investment periods will be much longer, this new method of financing will open new doors to those looking to reach the alpha section of their portfolios….