Crowdfunding Investment Platform

[Darren J Handyside]

Hi guys, this morning I was reading this article (http://turbinehq.com/2016/future-of-small-business-funding/) and two things caught my attention.

https://www.crowdcube.com/how-crowdcube-works

https://www.seedrs.com/

They are Crowdfunding investment Platform, and only target European
entrepreneur.

My question: Do we this type of platform in Australia?

[drllau]

Currently only ASSOB are licensed to offer pre-IPO shares, and even then it is limited to sophisticated investors. The legislation hasn't changed for equity but debt crowd-funding is already on the cards. The recent financial review hinted at change or more precisely relaxation of the existing regulations. If you are really really desperate to be the early worm, set up a NZ company (which does have crowd investing ... see Snowball Effect, etc) and use the Mutual recognition provisions of the trans-Tasman agreement. In the US, the Title III of the Jobs Act came into effect a few months back in May and there are 10 platforms. However, the vetting process (if it follows NZ standards) will be slow though they automate the SEC reporting. 

The problem is that most startups are not investable propositions 

[Geoff Langdale]

> The problem is that most startups are not investable propositions

Truth, yo.

For those of us with long memories, there have been quite a few unconventional funding approaches seen drifting through this very group. With the ASSOB, one is inevitably reminded of Kondoot...

http://www.startupsmart.com.au/advice/growth/koodoot-set-for-the-us-as-it-closes-32m-funding-round/

Then there was "Miiy", which did a reverse takeover... 

http://www.latrobevalleyexpress.com.au/story/218270/skys-the-limit/

I'm not sure where either of these companies are right now, or how they are going, but it's safe to say that they are not exactly household names.

Compare and contrast with the better companies that have come through the accelerators (e.g. Startmate) and raised money in a normal fashion and are going like gangbusters.I think we could do with some more innovation in Australia, but strongly suspect it should be confined to actual startup ideas, not quirky new ways of raising money... a lot of these 'weird strategies' seem designed to bypass more cluey investors and head straight for low-information investors.