- Description
- Specifications
Crowd Sourced Funding (CSF) is a type of corporate capital raising whereby a company seeks funds, in small amounts, from a large number of individual investors in return for securities for the company. CSF involves:
- Companies (issuers) that propose to raise funds;
- Intermediaries that host the platform through which offers are made to crowd investors;
- Crowd investors.
CSF has developed over the last few years in other countries as an online phenomenon, utilised particularly by small start-up companies seeking seed capital, as a complement to more established financing options involving professional investors, such as angel investing and venture capital.
This paper gives an overview of Crowd Sourced Funding - Equity Raising Overview and has been written under the following headings:
- What Is Crowd Sourced Funding?
- The CSF Legislation
- Eligible CSF Company
- Issuer Cap
- Fundraising In Addition To A CSF Offer
- Primary Issue Only
- Making a CSF Offer
- Corporate Governance Concessions
- CSF Intermediaries – Financial Services Licensing Requirements
- Australian Market Licence (AML)
- The Obligation Of A CSF Intermediary
- Stages Of A CSF Offer
- CSF Investors
- General Investor Protections
- Investor Protections For “Retail Clients” Only
- When Is A CSF Document Defective?
- Obligations In Relation To Defective Documents
- Investor Rights – Defective Documents
- Criminal And Civil Liability
- ASIC
- Accountants Minute Articles
- Professional Advice