The first listed Fintech investment fund in Australia, H20cean, is crowdfunding through Equitise to assist its support of Fintech startups. The raise, which is aimed at attracting between $27 and $55 million, will also assist investors in diversifying their portfolios, as it provides a solid foundation for long-term investment opportunities.
H2Ocean seeks to maximise the potential of Fintech investment, as Fintech companies commonly experience difficulty in proving viability and obtaining market traction. This is largely owing to a regulatory framework that justifiably values the consumer but can deter small startups owing to its complex nature. H2Ocean therefore provides the necessary expertise and services that must be at hand for any Fintech looking to navigate the complex waters of regulation, obtaining the approval that is the green light for any successful Fintech company. Equitise is excited to be hosting this raise for an innovative Trans-Tasman company that boasts a similar ethos and appeal as Equitise itself.
Another essential element of the H2Ocean model that Equitise considers unique and valuable, is how the shareholder that invest in the Company at the IPO are invited to participate in the H2Ocean Private Syndicate.
They will be offered opportunities for co-investment in companies that H2Ocean has invested in. These shareholders may from time to time be offered opportunities for co-investment in companies, that the Company or the Manager have invested in, which are raising money on the Equitise platform.
As such, H2Ocean aims to provide capital growth along a mid-to-long term period, together with a diversified portfolio separate from the traditionally private Fintech sphere. H2Ocean’s prospectus is lodged with ASIC and the raise looks to close on October 11.
H2Ocean hopes this will signal a changing landscape to Fintech potential in Australia. As one of the few Fintech companies supporting entrepreneurs who are behind the most innovating models and services in the country. Companies like H2Ocean shape the financial sector by providing the necessary platform for founders and entrepreneurs, who otherwise may not have the requisite resources to meet regulatory standards.
Founding partners Ben and Toby Heap have over 30 years of expertise in the financial services industry. The prospectus denotes the trends of the global Fintech sphere, stating that 2016 is set to top investment totals of 2015 for global Fintech financing to VC-backed companies, at $US 19.6 billion worldwide. Australia and New Zealand have witnessed a 343% jump in Fintech investment from 2010 to 2015.
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As always, remember to seek independent financial advice.