Crowdsourced Funding (CSF) legislation in Australia, was lagging behind when the Crowdsourced Funding Act came into being in 2017. But this legislation fell short of expectations. Only around 0.5 percent of businesses were eligible because proprietary companies (similar to Limited Liability Companies (LLCs) in the U.S.) were not included. Happily, the legislation was eventually amended to include public companies and Australia can now measure the success of these changes.
In the last two years, Australian crowdfunding platforms generated a total amount of $45,650 million AUD (more than $30,662 million USD). Investment platform Birchal raised the most funds overall, with other platforms, such as Crowd88, Enable Funding, Equitise, OnMarket Bookbuilds and PledgeMe, in hot pursuit.
Birchall, who shared data about successful campaigns and amounts raised with Crowdfund Insider, noted that based on population, Australia’s 2019 performance was slightly better than that of the U.K. in its first full year of operation.
It may be too early to see where the industry is headed, but legislative changes seem to have had some success and crowdfunding is definitely on the rise in Australia.
Read the Crowdfund Insider story here.
Image of kookaburras by Stan Balik from Pixabay