How to Launch A Successful Crowdfunding Campaign

In this guest post Bharathidasan Moorthi of ZingoHub sets out the key steps to run a successful rewards crowdfunding campaign
Crowdfunding is described as, “the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet”.

In simple words, crowdfunding is the method of raising money for your idea and project by launching it on crowdfunding websites.

Crowdfunding is predicted to be one of the biggest financial changes in history. Commentators are of the opinion that it will revolutionize the way money is exchanged in the world.

The crowdfunding model is fueled by three types of actors: the project initiator who proposes the idea and/or project to be funded; individuals or groups who support the idea; and a moderating organisation (the “platform”) that brings the parties together to launch the idea.

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Founder Series: Luke Fay of VentureCrowd

Crowdfund Vibe sat down with Luke Fay, CEO of Venture Crowd, to discuss the rise of crowdfunding in Australia. 

 

What was the motivation behind starting VentureCrowd?

VentureCrowd is democratising and scaling access to alternative finance. We are an alternative asset equity crowdfunding platform that provides investors with access to alternative investments, as well as entrepreneurs and property developers with access to alternative finance. All parties benefit from alignment, transparency and diversification.

The alternative asset universe has grown substantially over the past 10 years and can offer portfolio benefits such as uncorrelated returns, downside protection and improved risk/return profile. However, until VentureCrowd, direct investments in a diversified portfolio of alternative assets have been unviable to all but institutional investors or ultra high net worth investors with a family office due to large barriers to entry like ticket size, deal complexity and ongoing administration. Through fractional ownership, we offer our wholesale investors the ability to make direct investments into externally validated and curated alternative investments via an integrated platform. At the same time we provide high growth potential companies and curated property developers with access to funding that has been unavailable due to conservative risk appetites and capacity constraints from traditional sources such as banks and investment banks.

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Equity crowdfunding requires a rethink on company structure in Australia

By Marina Nehme

The vast majority of Australian companies are privately held. There are many advantages for this. Private companies face fewer regulations and lower requirements than public companies when it comes to reporting to shareholders, for example.

But new sources of funding are starting to blur the lines between public and private companies. As a result, we should consider introducing an intermediary form of corporation that sits between the two.

The difference between public and private

Private companies are not designed to raise funds from a large group of shareholders. In fact, two of their key characteristics are that they cannot raise capital from the public and they are limited to having 50 non-employee shareholders.

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