Australia is expected to follow Crowd-Sourced Funding trends in the United States and United Kingdom as these markets have already adopted Crowd-Sourced Funding reforms which have overseen massive growth in capital raising via Crowd-Sourced Funding platforms.
What an opportunity for accountants and business advisors to create a “new income stream” and at the same time assist SMEs who would like to raise capital to assist in the growth of their businesses!
Enable Funding (formerly ASSOB – Australian Small Scale Offer Board) have forecast that the new Crowd-Sourced Funding Capital Raising Market will soar from $119 million in 2016 to $1.5 billion in 2021 which would result in a 10 fold increase. (www.enablefunding.com)
Enable Funding believes that the new Crowd-Sourced Funding reforms in Australia will have similar effect on the Australian Crowd-Sourced Funding Capital Raising market and investor interest in that the market.
Enable Funding have forecasted the following Crowd-Sourced Funding equity raising amounts:
- 2017 – $210 million
- 2018 – $420 million
- 2019 – $688 million
- 2020 – $1.023 billion
- 2021 – $1.519 billion
Enable Funding was founded in 2007 and is now the largest investment crowd funding platform in Australia and one of the largest in the world. It is an equity crowd funding platform that has assisted in the raising of more than US $130 million for issuers since its inception.
ASIC is expected to finalise the licensing of the first batch of Intermediaries for Crowd-Sourced Funding in the next couple of weeks.
Companies will then be able to commence the capital raising process.
Most of the SMEs will require assistance in the preparation of:
- a Business Plan;
- Budgets and Cash Flow Forecasts;
- Information Memorandum;
- in the preparation of a Crowd Sourced Funding Offer Document; and
- for the negotiations with Intermediaries to assist the company’s directors to select an Intermediary that they wish to work with.
ESS BIZTOOLS has developed a unique Crowd-Sourced Funding Product Package for the Australian Accounting/Business Advisory Industries. If you would like to view the preview of the Crowd-Sourced Funding Product Package please click here.
Peter Towers | ESS BIZTOOLS