Investor questions

Can I invest now?

Absolutely, we currently operate an:

  • Online Business Introduction Service, which operates pursuant to the ASIC Class Order 02/273 “Business Introduction or Matching Services”, using the exemptive relief of section 708 of the Corporations Act;
  • Crowd-Sourced Funding (CSF) intermediary platform (AFSL: 502802).

 

A new era of crowd-sourced equity funding is upon us

The new CSF legislation commenced on 29 September 2017);

We (Enable Funding) have been granted an AFSL to operate as an intermediary under the new CSF legislation. This AFSL allows us to conduct a capital raise under the new CSF rules and raise up to $5 million from investors (maximum $10,000 parcels for retail investors) for qualified publicly unlisted companies;

Companies raising capital via CSF do it through offering its ordinary shares to investors in return for a relatively small cash investment. By law, eligible companies must use a crowd-sourced funding (CSF) platform, usually a website, to make their investment offer. The website is run by an intermediary that must have an Australian Financial Services Licence (AFSL) which authorises them to provide crowd-sourced funding services. Enable Funding has a CSF AFSL: 502802.  TheAFSL allows us to conduct a capital raise under the new CSF rules and raise up to $5 million from investors (maximum $10,000 parcels for retail investors) for qualified companies;

We intend to continue operating the current Business Introduction Services under Class Order 02/273 for the foreseeable future and also operate a CSF intermediary platform in tandem.

Capital Raising Alternatives?

DESCRIPTION CSF RAISES 708 RAISES
AUD $5M maximum annual funding per company (issuer)
Issuer must be public unlisted company
Enable Funding requirement
Issuer principal place of business and majority of directors must be in Australia (excluding alternate directors)
Issuer product & service restrictions Can’t have substantial purpose of investing in other companies, entities or schemes (including related parties) No restrictions
Issuer financial restrictions $25M maximum annual turnover and $25M maximum gross assets (including related parties) No restrictions
Ordinary shares issued
Unlimited number of professional, wholesale & sophisticated investors and investment amounts
Retail investors per issuer No restrictions 20 per annum
Retail investment per issuer $10,000 maximum per annum No restrictions
Cooling-off period 5 business days following retail investment application 10 business days following an investment discussion meeting (for shares purchased within 5 business days of that meeting)
Further information ASIC Regulatory Guide 261 ASIC Class Order 02/273

How to get started with investing:

  1. JOIN – Become a member of the Enable Funding community. Register now – it’s free and quick (and we always respect your privacy).
  2. LEARN – Learn about outstanding unlisted companies before the broader investment community. You’ll receive our monthly alerts, be able to view current offers and access videos and case studies.
  3. TAILOR -Tailor your investing and communication preferences by completing your Profile Page. We can then send you the most relevant information, in the format you prefer.
  4. INVEST – Complete the share application form when you are ready to invest and we will do the rest.
  5. COMMUNITY – You are part of a community that is supporting Australian innovation and participating in the growth of our economy.

Why choose Enable?

  • Experienced: We are the most experienced equity capital raising platform in Australia. Equity crowdfunding through a platform is a relatively a new phenomena. Enable Funding (formerly ASSOB) has provided this service for more than a decade. We are Australia’s oldest and an acknowledged global pioneer in its category;
  • Effective: We have a proven track record. We have raised more than $147 million through this form of investing. No other platform in Australia comes close;
  • Trusted: We are Australia’s most trusted platform. More than 29,000 members are part of our community and 176 companies have raised capital through us;
  • Thorough: We have market-leading due diligence. We carefully choose which companies to support through our exclusive IMENCA Business Evaluation Calculus and our Investment Committee. Our goal is to spot high-quality companies that could deliver higher returns for investors over time. We don’t always get it right, but investors know we take several extra steps to minimise risk, wherever possible;
  • Compliant: We have rigorous corporate governance requirements. Every company on our platform must have a board of directors and comply with quarterly reporting requirements. The aim is to connect companies and investors with confidence.

How does this benefit me?

Equity crowdfunding offers several benefits for retail investors and is suitable for self-managed superannuation funds (SMSFs) that want to allocate a small portion of assets to unlisted private companies. The SMSF sector is a key focus for us.

Key benefits of equity crowdfunding include:

  • The ability to invest in unlisted companies, start-ups and small businesses: This market has traditionally been the preserve of professional or wealthy investors;
  • Exposure to companies in potentially high-growth sectors: Many companies on the Enable Funding platform are from the information technology, life sciences or clean-tech sectors;
  • Potential for high returns: Earlier-stage companies, by their nature, have more risk than established companies, but in turn have the scope to provide for possibly higher returns. Please note that past returns are no indicator of future performance;
  • Portfolio diversification: Unlisted companies are typically less correlated with share or bond market movements than other asset classes. The value of private companies may be less affected by changes in share or bond markets;
  • Supporting Australian innovation: The value of investing in companies via Enable Funding is more than owning shares in companies; it’s about being a part-owner of fascinating businesses, helping early stage businesses get started, or providing growth capital for companies to expand and possibly benefiting from these exciting opportunities.

Am I a retail or wholesale investor?

Everyone is a retail investor unless they satisfy one of the requirements to be classified as a wholesale investor under certain sections of the Corporations Act.

The term wholesale investor includes sophisticated investors and professional investors.

A sophisticated investor is a person or entity that has obtained an accountant’s certificate dated no more than two years ago that they:

(a) have net assets of at least $2.5 million; or

(b) have a gross income for each of the last two financial years of at least $250,000.

Alternatively, a person or entity who invests where the purchase price of the product is at least $500,000 is also classified as a sophisticated investor.

A professional investor in this context is usually a financial services licensee or a person or entity who controls gross assets of at least $10 million (please note that there are other types of professional investors but we have not included a complete list here).

If you’re still unsure about whether you are a retail or wholesale investor, please consult your accountant or licenced financial professional.

Is buying shares in Enable's profiled companies risky?

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 the platform on which this offer is published 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.

Enable Funding does not give financial advice of any kind.

You should also seek independent advice from an Australian Financial Services Licensee who is qualified to provide such advice. You should also do your own due diligence about the industry, market opportunity and competitors.

The companies listed on the Enable platform are usually unlisted early stage companies and they generally fall into the high-risk category of investing due to:

  • Illiquidity –Most of the businesses displayed on the Enable platform will not be traded in a secondary market. This means once you invest you will most likely have to hold your ownership in the business until either the business lists on the stock exchange or the business is purchased by another company which could take many years;
  • Loss of Capital – Most early-stage businesses fail which results in investors losing all invested capital. You should not invest more money than you can afford to lose without altering your standard of living.
  • Dividends – Early-stage businesses typically do not pay dividends as any profits made are re-invested back into the company to help it grow and develop. Return on capital usually occurs if the business lists on the stock exchange or the business is purchased by another company.
  • Dilution – Dilution occurs when the business raises additional capital at a later date. By issuing new shares it will decrease the percentage ownership of all existing investors. Dilution may also occur as a result of the grant of options (or similar rights to acquire shares) to employees or other related parties to the business.

What fees do I pay?

Investors into companies listed on the Enable platform are charged no fees.

Can I easily sell shares I buy through Enable's platform?

Not generally. Unlike stock exchanges such as the ASX where there is significant liquidity, Enable is a much smaller platform where there are no secondary sales.

This means once you invest you will most likely have to hold your ownership in the business until either the business lists on the stock exchange or the business is purchased by another company which could take many years.

What is a "compliance listing"?

For companies whose capital raising offer has been declared “closed”, the Profile Page will be automatically transferred to a
Compliance Listing on the Funded Opportunities page. Enable levies a yearly fee to maintain admission.

All companies which are transferred to a Compliance Listing must remain compliant with Quarterly Reporting and submission of Annual Reports for at least five (5) years following the closure of the company’s capital raising offer, unless:
a) at a general meeting of the company’s shareholders, 85% or more of the shareholders agree to delist the company from Enable; or
b) the company is listed on a stock exchange.

Is Enable Funding a stock exchange?

No. Stock exchanges are able to show live buy and sell offers and are subject to high levels of compliance and regulation. Enable Funding is a platform that provides the tools for companies and funders who have acknowledged the risks of investing in companies outside of regulated markets such as a stock exchange, to communicate more efficiently and manage what is needed for a successful transaction.

Entrepreneur questions

How to get funded with Enable?

See Raise for details.

 

Are you ready to get Enable funded?

Become Enabled: Start on your funding journey today

You can get started by filling out the expression of interest form, there are several sections to this process to complete.

Watch the video to learn more about our process or click below to start your funding journey.

Get Funded Today

Rules of Admission

Enable Funding (Enable) has taken the initiative with regard to self-regulating its own platform at a level above and beyond what is required by ASIC in an effort to provide clear guidelines for all participants.

To download the full PDF Enable Rules of Admission, please click the button below.

Enable Rules of Admission

What does Enable look for from businesses that want to list on the platform?

The investment team look for several things, including:

  • Entities that are publicly unlisted companies or willing to become publicly unlisted companies;
  • Companies looking to raise between $500,000-$5,000,000;
  • Potentially high growth, scalable businesses;
  • Businesses that have a working prototype of their product;
  • Businesses that our screening process identify as having the highest chance of success in attracting investors.