From the team that brought you Pozible, Birchal is our sister platform, a new Equity Crowdfunding platform that connects brands with investors. Here are some of the reasons a company might want to look at equity crowdfunding as a capital raising option:Investing in early-stage startups is risky and investments made at this stage are illiquid. Equity crowdfunding by breweries overseas has been effective overall, despite some high profile failures, according to Pozible. Debt crowdfunding hasn’t proved to be as popular as these types of crowdfunding.The new kid on the block however, is equity crowdfunding.Equity crowdfunding is where a company offers part ownership to the crowd — something that had traditionally only been available to wealthy individuals, venture capitalists and angel investors.In Australia, this method of crowdfunding is still in its infancy with the first seven licenses being handed out to Australian companies in June, 2018.“It turns out bank managers who ride motorcycles are very rare. Speaking to StartupSmart in 2016, Pozible co-founder Rick Chen said the platform would be looking to make equity crowdfunding possible on its platform once legislation passed. Manage your Birchal profile, linked bank accounts and addresses, email preferences, and any teams you belong to. Before the equity crowdfunding laws were passed, crowdfunding was typically known for the rewards-based model.Equity crowdfunding is different to reward-based crowdfunding in that what you are selling is equity ownership (through shares) in the company. You can sign up Birchal charges no fee to the investor for making an investment and does not charge any ongoing administration or management fee for investments into companies listed on the site.Birchal Financial Services Pty Ltd is an Equity Crowdfunding Platform, (ABN 39 621 812 646) and is authorised and licensed by the Australian Securities and Investments Commission (AFSL 502618). You must create an account under your own name. After this, nothing is stopping you from taking the next step and having the crowd become investors.If you are interested in equity crowdfunding or just want to check out what type of business are currently crowdfunding, head to our sister site As of September 2018 however, private companies in Australia can get a piece of the equity pie.Australian private companies are normally limited to a maximum of 50 non-employee shareholders. There will then be a private launch to these supporters followed by a public launch and then the offer period. Equity crowdfunding, however, can perhaps be the most beneficial for a business, providing exposure and a community of brand advocates not typically available with other sources. The most well-known example is BrewDog, the craft brewery that pioneered the idea of equity crowdfunding for breweries with their first Equity For Punks campaign in 2009, and has gone on to build a company valued at over $1b.There are a number of fundraising options for small to medium-sized businesses not publicly traded on the stock market. With equity crowdfunding, a business has the opportunity to raise $400,000 from 400 investors putting in $1,000 each or 4,000 investors putting in $100 each.Because the investment amounts are capped and generally reasonably small, there is more leeway given to who can invest (you don’t have to be a direct friend/family member or an accredited investor) and businesses are able to advertise the offer to the general Australian public.The concept has been around overseas for a number of years now. A rewards or charity based campaign can build your customer base and bring in much needed funds or this may even be whilst a company is still a fledgling. While there is no set time frame for which each investor will be able to sell their shares, generating a return on their investment, there are a number of mechanisms which could provide an exit for each investor.

Many campaigns will offer rewards as an additional perk, but equity crowdfunding is the method of investing in early-stage companies at a low threshold (typically just $50).Before the equity crowdfunding laws, companies had to raise money, almost in secrecy from family/friends or accredited investors under strict ASIC guidelines that regulate who can invest, how many people can invest and how you could promote the offering.As an example with a traditional capital raise a business might raise say $400,000 from 4 investors putting in $100,000 each. Please see Birchal’s guide First, you must have a Birchal account. Manage all your previous investments made on Birchal, expressions of interest, followers, and referrals. Pozible Launches Equity Crowdfunding Platform Birchal. Brands and companies that are open to investment can profile themselves on Birchal. Award-winning cellist and singer-songwriter Monique Clare has just finished a hugely successful campaign for her debut album, raising $13,538 from 245 supporters! So what is equity crowdfunding? As the quote above relays, banks and traditional capital raising avenues can be rather restricting and not empathetic, so this form of crowdfunding opens up equity raising in a way that was not around before.The second benefit is similar to what we touched on above, it gives those of us who weren’t able to invest in the companies we love before, an opportunity to do so now with investments starting off at $50.To break it down into more simple terms, these are the main reasons that this form of crowdfunding was introduced:The wonderful thing is that our investors are our client base already, then — they get it and they’re excited by it,” — When equity crowdfunding first hit Australia it was limited to public companies who could raise up to $5 million on a licensed crowdfunding platform. However, companies choosing to equity crowdfunding are excluded from this cap, allowing private companies to raise funds from potentially hundreds or thousands of investors! Crowdfunding Platform Pozible Now Live in Malaysia, Singapore ASIC warns website operators about the risks of crowdfunding: Fines and up to … Many campaigns will offer rewards as an additional perk, but equity crowdfunding is the method of investing in early-stage companies at a low threshold (typically just $50). If you’ve been hearing about new legislation in crowdfunding in the news lately, then chances are this is it because it is pretty huge — considering public companies only make up 2% of Australia’s business landscape.From a supporter side of things, anyone can invest!

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