Crowd Sourced Funding – Knowledge is the Key

Accountant's Minute 192

Prepared from an interview with Andrew Geddes, Public Company Director, Consultant to Accountants and businesses wishing to “Scale Up” included within the webinar “All Female Business Very Popular”.  Click here to view the webinar.

Crowd Sourced Funding: Knowledge is the Key:

The former Chairman of Greencross Limited and Accountancy Industry Consultant, Andrew Geddes, believes Australia’s accountants and business advisors are not doing enough to stay abreast of new financial developments that could greatly benefit their clients.

Mr Geddes says most accountants should be spending up to 30% of their time educating themselves and extending their professional development which they could achieve by attending the “Scaling Up Masterclass”[1]

“One of the most important changes recently legalised in Australia is Crowd Sourced Funding Equity Raising” says Mr Geddes.

He claims “very few accountants even know what Crowd Sourced Funding is, let alone how it could help their clients to grow”.

“Small and medium companies often rely on their accountant’s advice to keep them competitive” Mr Geddes says, “yet, many accountants just keep doing what they’ve always done; sending clients off to the big banks or angel investors, where the cost they have to pay for growth capital can be crippling”.

He believes the advent of Crowd Sourced Funding Equity Raising in Australia could be the answer to the capital-raising needs of many accountants’ small and medium sized clients, but believes accountants must thoroughly learn about the process first to give informed advice.

“A good source of knowledge is the website of accountancy information-provider ESS BIZTOOLS” says Mr Geddes.  That website is

Finally legalised in October last year, Crowd Sourced Funding Equity Raising allows qualifying SMEs to raise up to $5-million of capital each year under an ASIC-regulated process.

So far, in just seven months, 36 companies have raised $28.9-million through the new process.

“Crowd Sourced Funding could prevent many companies in the small business sector from making a big mistake by prematurely launching an IPO.  Instead, Crowd Sourced Funding could allow those SME companies to stay in private hands and still raise the capital they need for growth” Mr Geddes says. “Once they have achieved that growth, they may well decide to go public, but Crowd Sourced Funding could help buy them time they need to get themselves ready”.

Mr Geddes sees the share market as being fraught with danger for many of the smaller listed companies.

A number of small companies have dropped off the share market in the past year and have had to be re-privatised, often because of the stringent operating conditions within the public arena.

“Preparing an IPO can cost around $1-million” he says, “but a Crowd Sourced Funding Offer is far less expensive, around $100k, and may achieve the same objective without the ongoing scrutiny of institutional investors, proxy advisors and shareholders, who constantly pressure listed companies”.

Mr Geddes is a strong supporter of Crowd Sourced Funding Equity Raising and believes, with the support of accountants and advisors, it could well become the preferred funding option for many of Australia’s small and medium sized businesses.

If you have any question on any aspect of the services provided by ESS BIZTOOLS, please do not hesitate to contact us.

Have a great day!

Peter Towers 

[1] Attend the “Scaling Up Masterclass” with two clients and receive a free seat at the two day event.  Click here for more information.

Do You Want More?

To gain an overview of what is included in the ESS BIZTOOLS’ icon goldGold Package. Please contact us for further information.

To download free material click the link below:-

Download this Week's Free Report

Watch out for the next episode of "Accountant's Minute" or subscribe to the podcast on iTunes for more news, ideas and tips on providing outstanding non-compliance services to SME clients.

Podcast Accountant's Minute

Episode 192 - Crowd Sourced Funding – Knowledge is the Key

Latest business advisory news for Accountants in under a minute.

As their trusted advisor, can you assist your SME clients with business advisory services?

Download Podcast in iTunes

Crowd Sourced Funding – Knowledge is the Key

Affiliates Wanted

Become an affiliate and earn additional income.
ESS BIZTOOLS is conducting a series of product campaigns for sales of products/services to accountancy businesses, business consultants, advisers and bookkeeping businesses.
We are happy to extend an invitation to an affiliate to participate as a supplier of services in promotions to our subscribers. If you are interested in this, could you please contact us?
We have launched the ESS Small Business website which is primarily targeted at small/medium companies and enterprises as well as not-for-profits, charities, sporting and social organisations.

Contact Details

12 Eclipse Street, ROWES BAY, QLD 4810
(07) 4724 1118
Toll Free: 1800 232 088

Latest Accountant's Minute

  • JobKeeper Extension is Some Clarification for Businesses
  • Marketing Success And An Awareness Of Legal Issues For Accountancy Businesses
  • Business Advisory Services - Crowd Sourced Funding - The Action Areas