Guide SMEs to Growth Through Crowd Sourced Funding
Accountants Minute 429
Some people still believe that only unlisted public companies in Australia can raise capital direct from the public.
THIS IS A MYTH.
Since 2018, both private companies and unlisted public companies that meet the eligibility requirements have been able to raise capital directly from the public under the Crowd Sourced Funding (CSF) Equity Raising framework.
How It Began
When the legislation was first introduced, it only permitted unlisted public companies to raise capital. The financial industry quickly pushed back – arguing that private companies also needed access to this capital-raising pathway. Within eight months, the law was amended.
Australia was actually playing catch-up. By the time CSF legislation arrived here, similar frameworks were already active in New Zealand, the UK, the USA, Canada, and Singapore.
How Crowd Sourced Funding Works
This legislation brought several important changes:
✅ Companies can raise capital without preparing a prospectus.
✅ The Australian Securities and Investments Commission (ASIC) licenses Crowd Sourced Funding Intermediaries to act as official gatekeepers and promoters.
✅ These intermediaries have dual responsibilities – representing ASIC while helping companies attract investors.
✅ The intermediary ultimately decides whether a company is eligible to proceed with a raise.
To qualify, companies must:
✅ Have less than $25M in turnover and assets
✅ Be unlisted
✅ Have at least two (2) directors
✅ Use funds for business growth (not to invest in securities or managed schemes)
The Numbers So Far
The leading intermediaries include:
✅ Birchal (Melbourne)
✅ VentureCrowd (Sydney)
✅ OnMarket (Sydney)
✅ Venture Capital (Sydney)
✅ Swarmer (Adelaide)
Where Accountants Fit In
This is where you come in.
Companies seeking capital through CSF rarely have internal expertise in financial systems, planning, or compliance. They need accountants who can guide them through:
✅ Structuring their business for compliance with CSF rules
✅ Implementing sound financial and management systems (such as the 52-Week Business Enhancement System)
✅ Developing Business Plans and Predictive Accounting Reports – budgets, cashflows, and KPIs
✅ Holding regular Board meetings and producing meaningful financial reports
✅ Preparing the Crowd Sourced Funding Offer Document, which, while not a full prospectus, still demands significant detail
The Untapped Potential
Despite being available for seven years, CSF is vastly underutilised.
✅ On average, fewer than 70 companies per year raise capital through CSF.
✅ One intermediary, Equitise, reported turning away 95% of applicants due to poor preparation.
That’s hundreds of companies every year missing out – and a huge opportunity for accountants to step in and help them meet the standard.
Imagine if every licensed intermediary was working with 49 companies annually (the current Birchal volume). That would be 784 businesses - and hundreds more still in need of advisory support.
The Opportunity for Your Firm
If your firm wants to move beyond compliance and deliver Financial, Commercial, and Management Accounting Advisory Services, this is your moment.
Many firms say:
“We don’t know much about Crowd Sourced Funding.”
“We haven’t done much advisory yet.”
“Where will we get the resources to support these clients?”
That’s where ESS BIZTOOLS comes in.
We’ve built complete product packages on every aspect of Crowd Sourced Funding Equity Raising – giving you the tools, templates, and knowledge to confidently deliver advisory services to growing SMEs.
EXPLORE CSF EQUITY RAISING PACKAGE HERE
Don’t Miss Our Complimentary Webinar
Crowd Sourced Funding: Capital Raising Opportunities for SMEs
🗓 Thursday, 30 October
⏰ 11:00 AM AEST
Join us to explore how your firm can participate in this powerful new era of SME capital raising — and position yourself as a Key Strategic Partner in your clients’ success.
Visit our website – www.essbiztools.com.au – to discover the detailed overview of the services provided by ESS BIZTOOLS. You are also welcome to contact us on 0418 190 181 or email .
Free Webinar by ESS BIZTOOLS
Crowd Sourced Funding: Capital Raising Opportunities for SMEs
📅 Thursday 30 October | 11am AEST
Maximise Business Sale Value for SMEs
📅 Thursday 6 November | 11am AEST
Starter Package: Your Launch Into Advisory Services
📅 Thursday 13 November | 11am AEST
Advisory on Demand: The Advanced Package Advantage
📅 Thursday 20 November | 11am AEST
Financial Forecasting Package: Advisory With Vision
📅 Thursday 27 November | 11am AEST
Empower Tradies with an Effective Pricing System
📅 Thursday 4 December | 11am AEST
Guiding SMEs to Success Through Business Planning
📅 Thursday 11 December | 11am AEST
Smart Succession Planning for SMEs
📅 Thursday 18 December | 11am AEST
Want to know more?
Visit www.essbiztools.com.au.
If you would like to have a discussion about how this concept of virtual CFO services can be supplied by Australian accounting firms please ring our Managing Director, Peter Towers, on 0418 190 181 and we will arrange a complimentary 45-minute Zoom meeting to discuss your firm’s position and to give you our advice.
We believe that this is the blueprint for the delivery of an enhanced range of services by Australian Accounting and Bookkeeping firms to assist SME businesses to add value to their businesses and to assist accountants and bookkeepers not only to attract but to retain outstanding talent who want to be involved in the delivery of “real accounting services”.
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