It’s taken a while but finally Crowd Sourced Funding Equity Raising for Small Proprietary Companies is now available, without the company having to convert to an unlisted public company.  This journey commenced in 2015 when the Federal government announced its “Innovation Policy” which included the creation of two new types of companies – Early Stage Innovation Companies and Crowd Sourced Funding Companies.

It took some time for Crowd Sourced Funding Equity Raising companies to be established along similar lines in Australia to their counterparts in New Zealand, UK, Europe, USA and Canada.

This legislation enables companies, which could basically be described as entities with turnover less than $25 million with the value of their gross assets less than $25 million that are not listed on a stock exchange anywhere in the world, to raise up to $5 million every 12 months from the public.

These companies will only be able to raise capital from the market if they have a compelling story, have been guided by competent professionals to enable them to produce the required documentation and to be able to articulate their company’s vision.

This is the challenge for your firm!  To assist your clients to be able to develop all of the documentation that the legislation requires and, in so doing, to articulate their company’s compelling story.

This is an opportunity for your accountancy firm/business advisory firm to be able to differentiate yourselves in the marketplace, to create new income streams for the firm’s benefit and create very interesting work for your team members and probably more importantly create a close working relationship with your clients, who you are able to assist as they grow to bigger and better things.

The ESS BIZTOOLS' Crowd Sourced Funding Product Package commences with the Procedure Control Form which will guide you through the process from team training, marketing of Crowd Sourced Funding to your clients and prospects and then onto the delivery of professional services to assist your clients to be able to raise Crowd Sourced Funding Equity.

The team training component is very important because all team members, who are going to be communicating with your clients or prospects relative to Crowd Sourced Funding, should have a good working knowledge of how Crowd Sourced Funding operates.

The marketing material is an essential component of the product package because this will assist you to communicate with your clients and prospects to advise them that your firm is committed to assisting them on this journey.  Some small/medium enterprises will have the belief that their accountants are unable to assist them on this journey because of the perceived concentration on income tax matters – the marketing material has been prepared to assist you to communicate with your clients and prospects to clearly identify to them that your firm is committed to supplying them an outstanding service to assist them on this journey as they grow.

The delivery of professional advice is summarised in 12 steps to assist you in the implementation process:

• Step 1: Is your client potentially eligible to be a CSF company?
• Step 2: Is your client interested?
• Step 3: Level of disclosure – is your client ready to proceed?
• Step 4: Investor categories.
• Step 5: The role of the Intermediary.
• Step 6: Contact with Intermediary.
• Step 7: Preparing the CSF Offer Document.
• Step 8: CSF Offer Document to Intermediary.
• Step 9: Going live on the Intermediary’s platform.
• Step 10: CSF Offer Document defective.
• Step 11:  Closing the CSF offer.
• Step 12: Post capital raising.

If you have any questions or require mentoring assistance relative to the implementation of the Crowd Sourced Funding Product Package, please do not hesitate to contact the team at ESS BIZTOOLS.

• Email:
• Telephone: 1800 232 088

Thank you for your support of ESS BIZTOOLS and ESS BIZGRANTS.

Have a great day!