Equity Crowdfunding: an Equitise Guide to Start Investing in High Growth Companies

THE PROLIFERATION OF HIGH-GROWTH COMPANIES ACROSS AUSTRALIA AND NEW ZEALAND REQUIRES CROWDFUNDING PLATFORMS THROUGH WHICH INVESTORS CAN ACCESS EXCITING STARTUP INVESTMENT OPPORTUNITIES.

High-growth companies are proliferating across Australia and New Zealand and this growth requires platforms through which investors can access these exciting opportunities. As a method of alternative finance, equity crowdfunding is a sphere which has seen enormous growth across the two countries and it’s a valid option for investors who want to help startups getting their innovative ideas off the ground.

According to the 2017 Startup Master Annual Report, in 2017 the number of startups in Australia kept growing, in particular the ones that operate in the fintech (19.7%), education (15.1%), internet (14.7%), artificial intelligence (14.5%), content/media (13.1%) and marketing (13.1%) sectors.

The majority of the newest Australian startups are located in the Sydney area (39.4%), in Brisbane (15.2%) and in Melbourne (%13.4%). The startup ecosystem is flourishing also in New Zealand, where 400-600 startups have been estimated in the country. The year 2017 has been the most successful year for equity crowdfunding in the country, where $13.4m have been raised. Looking at the past three years, almost two-thirds of all equity crowdfunding campaigns have reached the minimum, with a 64% success rate in 2017. The number of companies raising capital has remained stable, but the average capital raise has increased from $590,000 in 2015 to $750,000 in 2017.

In this context, through a syndicated investment and equity crowdfunding platform, Equitise brings together the Australian and New Zealand investment network. Moreover, thanks to the latest changes on the legislation, anyone can now invest in exciting startups that show the potential to grow through the equity crowdfunding website.

But what opportunities do startup companies offer to investors?

Today, Equitise examines how tapping into these companies alters the entrepreneurial landscape, and how they can offer higher returns.

Why equity crowdfunding and high-growth companies are the way to go

Whilst investing in startups can be risky, research in this domain has demonstrated that high-growth businesses offer higher returns, being an internal rate of return of 27%, based on the average hold time of 3.5 years. This, in addition to the appeal of a diversified portfolio, means that for some investors investing in startups can generate higher returns and effectively minimise risks.

Moreover, investing in equity crowdfunding means receiving ownership of a small piece of the business and, in some cases, the investor might play an active role as an advisor for the startup team, which surely needs some more connections, mentorship and help with the management. Investors decide in which company to invest, making their own company valuation, analysing the market and industry in which the company operates or looking to the ones tuned with their personal values and passions.

The Hon Craig Laundy MP, the Assistant Minister for Industry, Innovation and Science, underlined another reason to invest in startups:

“Startups play a critically important role in Australia’s innovation ecosystem. They punch well above their weight in terms of the contribution they make to growth in jobs, sales and exports compared with other types of firms. In fact, they add about double what they would be expected, given share of total employment.”

Let’s know have a look at the main benefits about investing through the main equity crowdfunding platform in the Equitise, the Australasian investment platform that connects innovative companies with investors who believe in them.

About Equitise

As the Trans-Tasman’s leading equity crowdfunding platform, Equitise has over 20,000 users across Australia and New Zealand. There are various benefits for investors who decide to invest on Equitise:

  • Anyone can invest from as little as $50 and choose how much to buy in shares in the business.
  • The chance to access different investment opportunities, from innovative startups to IPOs.
  • The platform handles all documentation admin and payment in a secure and trusted platform.
  • After the investment, Equitise assists and provides its investors with update information about the business growth and throughout the investment lifecycle investors will be able to easily communicate with the company.
  • The platform ensures that all offers are clear, undertaking an extensive preliminary check before each equity crowdfunding campaign goes live on the website.
  • Registering on Equitise and making an investment through the platform is free. There are no administration or legal fees, nor hidden costs or charges.Only if an issuer chooses to use the Equitise Nominee service, investors might be charged carry.

Becoming a registered investor

Equitise allows registered investors to browse equity crowdfunding investment campaigns, learn about early stage businesses looking for funding, invest in the ones that spark interest, and watch the businesses growth – all directly through the Equitise crowdfunding website. Whenever there is a return on the investment the money is paid directly to the investor. In the last years, different innovative tech companies in the agricultural and medical spheres, as well as robotic design companies raised capital through Equitise. To have first access to the most innovative and high-return investments across the Trans-Tasman, becoming a registered investor is the first and essential step to take.

Invest in startups for equity and help exciting businesses taking off. Join the Equitise platform and become a registered investor with Equitise today.

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