Can I invest now?
- Crowd-Sourced Funding (CSF) intermediary platform (AFSL: 502802)
- Online Business Introduction Service (708) 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
What is equity crowd-sourced funding?
- The new CSF legislation commenced on 29 September 2017
- Companies raising CSF capital offer ordinary shares to investors using a crowd-sourced funding platform (usually a website)
- CSF platforms must have an Australian Financial Services Licence (AFSL) authorising crowd-sourced funding services. Enable Funding (AFSL 502802) is one of the first intermediaries licensed to raise up to $5 million per issuer (maximum $10,000 for each retail investor) for qualified publicly unlisted companies per annum
- In addition to operating a licensed CSF platform, we raise capital under ASIC Class Order 02/273 (aka business introduction services)
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:
- JOIN – Register now for free membership in our exclusive investor community (it’s quick and we always respect your privacy)
- LEARN – Be first to discover outstanding unlisted companies, receive monthly updates, view offers, access videos and see case studies
- TAILOR – Personalise your investing and communication preferences to receive customised opportunities and information
- INVEST – Complete the online share application when you’re ready and we’ll do the rest
- COMMUNITY – Welcome to a global community of like-minded crowds supporting innovation
For more information please see: About enable Funding and How to Invest
- Exclusive. The IMENCA business evaluation calculus aim to identify high-quality opportunities that could deliver higher returns for investors over time
- Experienced: World’s oldest equity crowdfunding platform and acknowledged global pioneer
- Proven track record: Raised nearly $150 million (well in excess any any other Australian platform)
- Trusted: As Australia’s most trusted platform, we’ve helped nearly 200 companies raise capital from more than 30,000 members
- Thorough: We don’t always get it right but our market-leading due diligence and Listing Committee take several extra steps, wherever possible, to minimise risk and carefully choose which offers to list
- Compliant: Rigorous corporate governance requirements for every company raising capital
Benefits of equity crowd-sourced funding
- Invest in unlisted companies. Start-ups and small businesses have traditionally limited to professional or wealthy investors)
- High-growth sectors. Many offers have been in the information technology, life sciences and clean-tech sectors
- Potential for high returns. Earlier-stage companies, by their nature, have more risk than established companies, but in turn may generate higher returns (note: past returns do not predict future performance)
- Portfolio diversification. Unlisted companies are typically less correlated with share or bond market movements than other asset classes
- Support home-grown innovation: As shareholder in fascinating businesses, your crowd investment can enable companies to get started or expand to pursue exciting growth 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 crowdfunding 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 are charged no fees to participate in our listed offers.
What is a compliance listing?
- the company is listed on a stock exchange or
- 85% or more of the shareholders agree at an AGM to delist the company from Enable
Is enable Funding a stock exchange?
- No. Stock exchanges may show live buy and sell prices for shares and are subject to high levels of compliance and regulation
- Our platform provides communication and transaction execution tools for companies and investor who acknowledge the risks of investing outside of regulated markets, e.g. stock exchanges
How to get funded with enable?
Watch the video to learn more about our process or click below to start your funding journey.
Rules of Admission
What does the Listing Committee look for?
- Currently or willing to become publicly unlisted companies
- Looking to raise $500,000-$5,000,000 in any year
- High growth and scalable businesses
- Working product or service prototype
- Strong IMENCA score indicating likelihood of attracting funding
- Understanding and engagement with target customer and investor crowd community (we’ll help with this if required)
- Strong brand, vision and message (we’ll help with this also if required)
- Powerful and concise investment pitch (of course we’ll help with this too)
What capital raising fees are paid by Issuers?
enable Funding’s fees under the Hosting Agreement with each Issuer are set at a maximum of 8% (ex GST) of the total funds raised. There are also some up front document preparation, due diligence and listing fees which vary from raise to raise.