Important notice for investors
Can I invest now?
- Absolutely, we currently conduct 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;
- The current section 708 exemption allows for 20 retail investors per capital raise in a twelve-month period;
- There is no limit or restrictions on the number of wholesale investors (including sophisticated and professional investors);
- This will change for retail investors with the new crowd-sourced funding (CSF) legislation;
- Please note that we (Enable Funding) do not currently hold an Australian Financial Services Licence (AFSL) to provide a crowd-funding service under the new CSF regime and are not subject to the gatekeeping obligations that apply to CSF intermediaries.
A new era of crowd-sourced equity funding is upon us
- The new CSF legislation commenced on 29 September 2017 (please see more details on CSF below);
- We (Enable Funding) are in the process of applying for an AFSL to operate as an intermediary under the new CSF legislation. Once granted, this AFSL will allow 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 platform under Class Order 02/273 for the foreseeable future and also operate a CSF intermediary platform (once approval has been received from ASIC) in tandem.
How to get started with investing
Become a member of the Enable Funding community. Register now – it’s free and quick (and we always respect your privacy).
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.
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.
Complete the share application form when you are ready to invest and we will do the rest.
You are part of a community that is supporting Australian innovation and participating in the growth of our economy.
Why choose us?
- 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 potential investors 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.
How does the new CSF legislation work for an investor?
More Australians will soon be able to invest in unlisted companies via Enable Funding
For the first time Australia has a legislative framework that allows crowd-sourced funding (CSF). The Federal Government in 2017 introduced new laws that bring our equity crowdfunding market into line with US and UK developments.
Key provisions include:
- A retail investor limit of $10,000 per company (issuer), but an unlimited number of retail investors;
- Wholesale investors (including sophisticated and wholesale investors) have no investment size restrictions;
- An unconditional ‘cooling off’ period for retail investors to withdraw from a CSF offer within five business days of their application;
- A prohibition on the company and its related parties, and the CSF intermediary and its associates, providing retail investors with financial assistance to buy shares under CSF offers;
- The CSF intermediary must obtain a risk acknowledgment from a retail investor before accepting a CSF application from the investor.
Please note that we (Enable Funding) do not yet hold an AFSL to provide a crowd-funding service under the CSF regime and are not yet subject to the gatekeeping obligations that apply to CSF intermediaries.