Crowdfunding small business Australian

Australian Small Scale Offerings Board chief Paul Niederer

True equity crowdfunding has no gatekeepers: Australian Small Scale Offerings Board chief Paul NiedererCrowdfunding is predominantly about people’s natural affinity to support causes they believe in.

Equity crowdfunding promises to democratise finance, just like self-managed super funds have done for superannuation.

But as the more traditional investment operators have ventured into the equity crowdfunding space, the conversation has shifted to portals operating as gatekeepers and the need for investors to maintain a diversified portfolio.

This is the case for Israeli platform OurCrowd, which launched in Australia on Monday, and the pending VentureCrowd platform from Artesian Venture Partners. But in a column for BRW, Paul Niederer, the chief executive of the Australian Small Scale Offerings Board, explains why this is not his idea of crowdfunding.

One of the effects of the United States leading the world in crowdfunding regulation advances is that its introduction is following the regulators step by step.

Incumbent players such as broker dealers, investment bankers and other vested interests get to have a go first. This brings in a focus on things such as diversified portfolios.

If we look at pledge and reward crowdfunding, such as Kickstarter, IndieGoGo and Pozible, it started with the people, by the people and for the people. Very little curation and certainly not someone else making decisions for the pledgers.

As the more traditional investment operators have ventured into the equity crowdfunding space, there has been more and more written in the vein of:

  • most start-ups fail
  • 90 per cent of the returns come from 10 per cent of the start-ups
  • thus. . . dangerous grounds for individual investors
  • they need to build diversified portfolios
  • incumbent investment organisation are the best at picking winners
  • best take a fund approach, we have the track record to manage your investments
  • you can trust our curation and selection criteria
  • we will charge you a “small” percentage each year to manage your investment.

Meaning, you are better off getting someone else to choose which equity crowdfunding ventures you put your money into and paying them to do it for you. Doesn’t seem like true “democratisation of finance”.

JOBS act a win for startups and economy

by spike_mike_returns

(CNN) -- The Jumpstart our Business Startups, or JOBS Act, is a win for entrepreneurship as well as bipartisan politics, and given economic hardship, unemployment and political bickering, it's time for a win. Next step: Declare victory and unleash an economic winning streak.
On Thursday, President Barack Obama signed the JOBS Act with overwhelming bipartisan support. The bill makes it easier for startups to raise money, to stay private when they need to and to go public when the time is right. Overall, it promotes a pro-entrepreneurship agenda.The bill's "crowdfunding" provision is getting the most attention

Business Briefs  — Glenwood Springs Post Independent
25, in Carbondale), Crowdfunding for Small Businesses (Thursday, Sept. 26, in Glenwood Springs), Successful Retail is in the Detail (Thursday, Oct. 3, in Aspen) and Public Relations Techniques and Practices (Thursday, Oct. 10, in Glenwood Springs).

CreateSpace Independent Publishing Platform Crowdfunding - The next big thing?: How crowdfunding is evaluated by different expert groups as a future model of financing new ventures in Germany.
Book (CreateSpace Independent Publishing Platform)
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