1 Mar 2016: The Australian government’s crowdfunding legislation moved a step closer to becoming law today as the Senate Economics Committee released its report on the Bill. Recommending that that legislation be passed, Committee surveyed the concerns raised by the nascent industry and recommended that the new regime be reviewed within two years. The Opposition has introduced amendments to address two of these concerns, which would open up crowdfunding to all Australian companies and increase the maximum size of a crowdfunding company to $10M.
25 Feb 2016: A New Zealand campaign to buy a private beach for the public in a national park has succeeded in its bid to secure the beachfront land. The campaign on New Zealand’s biggest crowdfunding site, Givealittle, raised over NZ$2 million from more than 40,000 people. The cause struck a chord with many Kiwis, whose desire to see the land become part of the country’s iconic Abel Tasman National Park, will now be realised.
A guest post from Josh Daniell and Nathan Rose
New Zealand is a pioneer in equity crowdfunding – one of the very first countries to create a legal framework for retail investors to participate in offers of shares in private companies. So when the first equity crowdfunding offer launched in New Zealand in August 2014, many watched with interest as this new way to raise capital took its first steps.
There were initial mixed reactions from existing market participants. Some saw the broader reach to retail investors as an opportunity to create efficiencies through a streamlined online process, as well as increasing access to an asset class previously restricted to the traditional institutional and high net worth networks. Others were concerned that retail investors would struggle to fully understand the risks involved with early stage growth companies, and would be fleeced through low quality deals.