PLATFORM FAQs

GENERAL

Q: What is Equitise? A: Equitise is an Equity Crowdfunding Platform.

We enable Companies to raise capital in an intuitive, modern and efficient way.

Bringing Investors and Companies together, the Equitise Investment Platform simplifies the investing process. It removes traditional barriers to investing and sourcing capital by making the process quick, easy and safe. In doing so, we help businesses grow.

Equitise is the Trans-Tasman equity crowdfunding platform, offering global companies a way of raising capital in Australia and New Zealand.
Q: What is Equity Crowdfunding? A: Equity Crowdfunding is a mechanism that enables a group of Investors (the Crowd) to provide funding to a Company in return for an ownership stake (Equity).
Q: Why use Equity Crowdfunding? A: Traditional capital raising is time consuming and involves chasing paperwork and a small network of people. Through our platform, we streamline this process by facilitating the entire transaction from conception of the offer to funding, and can distribute the offer to a much broader audience.

For Companies, raising Equity Crowdfunding through Equitise is a low cost and more efficient method of raising capital. Companies can leverage our technology to offer shares to a broad audience through a frictionless investment process.

For Investors, the Equitise platform provides access to high growth, innovative investment opportunities, an asset class which until recently has been inaccessible to the general public. With the recent changes in the regulatory approach in Australia and New Zealand, all Investors will have access to high quality early stage investing.
Q: What fees are charged? A: Typically, we charge a one off fee of 7.5% of the capital raised and a fixed cost for time spent and the use of Equitise Nominees Limited, which administers the transaction and Investors. This fee may vary depending on the input required by Equitise to manage the transaction.

Syndicates and Investors do not pay any upfront fees on Equitise transactions. For syndicated transactions, Investors may also pay their Syndicates Lead up to 20% Carry. Investors pay Equitise 5% carry on any profits made on their investment.

INVESTORS

Q: Who can invest? A: Our public offers are open to anyone over the age of 18 in New Zealand, and any wholesale or sophisticated Investors in Australia.
Q: How do I invest? A: To begin investing, you will need to join the Equitise Investment Platform as an Investor here.

This requires you to acknowledge and agree to our Investor Agreement, Risk Warning and Disclosure Statements. You will also need to verify your identity.

Once you have done this, click “Invest” on an offer page to begin investing.
Q: How do I invest in a syndicates transaction? A: To gain access to syndicated transaction, you will need to join a Syndicate.

You can either apply to join a Syndicate or be invited into the Syndicate by a member of its Investment Team. Syndicate Leads have absolute discretion whether to accept or decline new Investors into their Syndicate, and can remove Investors at any time.
Q: What is the minimum investment? A: The minimum investment is set by the Company raising capital, though Equitise typically recommends Companies set a minimum of at least $500 for public offers.
Q: Is investing through Equitise risky? A: Funding early stage businesses is risky. The majority of early-stage businesses will fail and if this happens, you will likely lose all of your investment. Companies using the Equitise Investment Platform include new or rapidly growing ventures. Investment in these types of businesses is very speculative and carries high risks. You must be in a position to bear the risk of lose your entire investment without undue hardship. However, with great risk, there is also the possibility of great reward.
Q: What types of shares are available? A: Companies will typically offer ordinary shares through the platform, however your rights as a shareholder will be outlined on the offer page of the transaction. The specific details relating to the shares offered will be articulated in the documents attached to the offer.
Q: How do I sell my shares after I have invested? A: Shares of early stage ventures are highly illiquid and are typically held until a major transaction is executed. Equitise does not operate an active secondary market for you to sell your shares like a registered stock exchange. However, Equitise will register your buy or sell interest and broker a private transaction if a matching buy or sell order is presented by another Investor.
Q: What is overfunding? A: Companies set a minimum amount of funding they wish to raise. Once they have reached this minimum they are then able to continue to raise more funding up to the maximum funding amount. We refer to this period as overfunding. A company may decide to scale back investors, or issue more equity to cover this overfunding.
Q: What role does Equitise play after an Investment Agreement is signed? A: Once the Investment Agreement is signed, we will proceed with your authority to direct debit your nominated account for your investment amount. We will hold your investment funds in our trust account until the offer is finalised.

If the offer is successful, the Company will receive the proceeds from the trust account. If the offer fails, we will return your funds.

COMPANIES

Q: Is my Company suitable for Equity Crowdfunding? A: Equity Crowdfunding is well suited to businesses with strong growth potential and therefore an ability to generate high returns for Investors.

Equity Crowdfunding is well suited to Companies who operate in a Business-to-Consumer (B2C) fashion. The Company can leverage their customer database by inviting them to invest in the offer, and the capital raising can simultaneously be used as a marketing campaign.

Not all Companies are suited to raise capital through Equity Crowdfunding, and we will typically reject Companies that we do not consider suitable, or that do not meet our criteria for launch on the platform.
Q: What is the Equitise criteria to launch an offer on the platform? A: Equitise will request that Companies complete an on-boarding process that may differ depending on the size and history of your company.
Q: What is the fundraising process? A: The process begins by you registering on our website and verifying your identity. We will then identify the Directors of the Company. Once confirmed, the Company will be requested to complete our on-boarding process:
  1. Engagement
  2. Vetting
  3. Campaign strategy
  4. Transaction launch
To begin our on-boarding process, please email contact@equitise.com
Q: How much can be raised? A: There is no limit on the amount you can raise from sophisticated/wholesale Investors in Australia or New Zealand through the Equitise Investment Platform. Crowdfunding regulation limits the amount that can be raised from retail Investors in New Zealand to $2,000,000 NZD in any 12-month period.
Q: How much can be raised? A: There is no limit on the amount you can raise from sophisticated/wholesale Investors in Australia or New Zealand through the Equitise Investment Platform. Crowdfunding regulation limits the amount that can be raised from retail Investors in New Zealand to $2,000,000 NZD in any 12-month period.

We typically require a minimum of $100,000 to be raised through the platform.
Q: How long is the offer period? A: We will work with you to set an offer period that is suitable for your business. We usually suggest launching a transaction for at least 30 days.
Q: What happens if minimum /maximum target amount is reached? A: If the minimum target amount is reached, the Company will keep the offer open until the maximum target amount is reached or time runs out on the offer.
Q: What happens if target amount is not reached? A: If your target amount is not reached, we return all Investor funds committed to your offer. This is referred to as an "all-or-nothing" crowdfunding method.
Q: How long does it take to receive funding once my offer is completed? A: It usually takes 14 days to complete all documentation, confirm investments and transfer the offer proceeds to your account from our trust account.

Syndicates

Q: What is a Syndicate? A: Syndicate is an umbrella term for any investment group managed by a Syndicate Lead:
  • Syndicate Leads (or 'Leads') are typically experienced professional Investors such as VCs and Angel Investors
  • Leads share investment deal flow with their Syndicate Investors in exchange for Carry on a deal-by-deal basis
Investors, Syndicates and Companies form an ecosystem of investment activity on the platform.
Q: What are the benefits of a Syndicate? A: For Syndicate Leads, Carry is earned on transactions that prove profitable for Investors. Leads strengthen their industry reputation and build their Investor base by listing investees or executing funding rounds. Syndicates also provide full, seamless, digitally automated deal execution for a traditionally onerous deal syndication process.

For Investors, Syndicates provide exclusive access to the deal flow of an experienced investment professional. For Syndicate Leads, Syndicates provide access to high quality investment opportunities that are supported by investment professionals. Syndicates also provide full digital automation of the investment process and interaction with experienced Investors and growing, innovative companies.

For Companies, Syndicates provide both an experienced business partner and higher chances of success for a fundraising transaction. Syndicates also provide access to an Investor base that can be accessed for future funding rounds.
Q: What is Carry? A: Carry (short for 'carried interest') refers to a portion of investment profits paid to the manager or adviser of an investment. Investors in alternative investment funds typically pay Carry to the Fund Manager based on the profits of the fund.

On the Equitise Investment Platform, Investors agree to return a portion of any profit from their investment to the Syndicate Lead and Equitise. Carry is paid deal-by-deal to ensure that the interests of the Lead and Equitise align with Investors in every deal.

Q: How is Carry calculated? A: Carry is paid on a deal-by-deal basis. Exit events typically include an IPO, Trade Sale or 50% change of control, though will ultimately be specified by the Syndicate Lead. Carry is calculated based on the investment profits earned by all Investors in the round except the Syndicate Lead.

Syndicate Leads earn between 0% and 20% Carry and Equitise earns 5% Carry.

For example: An Investor participates in a syndicated transaction, agreeing to pay 20% Carry to the Syndicate Lead and 5% Carry to Equitise. If the Investor successfully reaches an Exit Event with a $100,000 investment profit, then the Syndicate Lead would earn $20,000 of this profit and Equitise would earn $5,000. The remaining $75,000 would then be returned to the Investor as net profit on the investment, in addition to the initial investment amount.
Q: Who can create a Syndicate? A: Any verified Investor can create an Equitise Syndicate. It is simple to create a Syndicate – just follow the steps in the ‘Raise Funds’ section of the Platform.
Q: Who can join a Syndicate? A: Any verified Investor on the Equitise Investment Platform can apply to join a Syndicate. The Syndicate Lead will always have absolute discretion to approve or reject Investors in their Syndicate. Investors can be added or removed from a Syndicate by the Lead at any time and for any reason.
Q: Who can view a syndicated transaction? A: The Syndicate Lead has absolute discretion as to the Investors that are offered a transaction. This decision is typically made in consultation with the Company, and will be based on the Investors that will likely add the greatest value to the Company over the investment period.

Acceptance into a Syndicate does not guarantee that an Investor will have access to every transaction syndicated by the Lead, though Investors that are accepted or invited into a Syndicate will always have priority over public (crowd)Investors.
Q: How do Syndicates work? A: All syndicated investments made through the Platform are held by the Equitise Nominee on behalf of the Investor. Carry and investment returns are calculated by the Nominee. All shareholder rights and obligations are passed through the Equitise Nominee to the underlying Investor.

Q: Do Syndicate Leads need to invest in their deals? A: No. Investment is typically provided by the Lead as a cornerstone for their transaction though we do not require this. We do recommend a significant investment from the Lead to demonstrate strong support for a transaction, however we recognise that this investment may not be feasible in many scenarios.
Q: Will Equitise ever contact my Syndicate members? A: Equitise does not contact a Syndicate Investor invited to the Syndicate by the Lead.

All Investors on the Platform have the opportunity to join the broader Equitise Investment Ecosystem by investing in an offer outside the Syndicate or opting-in to Equitise communications.
Q: Who handles the documentation in each deal? A: Equitise handles most of the investment documentation for Syndicated transactions.

The Platform allows Investors to see all the relevant investment and legal documentation they will need to invest in a transaction, and allows digital execution of all legal documents. Ongoing Investor management, communication and reporting is handled by Equitise.
Q: What fees are paid by Investors in syndicated deals? A: Investors agree to a certain Carry structure when investing into a syndicated transaction. Syndicate Leads will specify Carry of between 0% and 25% on a deal-by-deal basis, and Equitise earns 5% Carry on all transactions through the Equitise Nominee.

Unlike traditional funds, there are no management fees charged by the Syndicate Lead or Equitise associated with syndicated transactions executed through the Platform.
Q: Do I ever meet my Investors or are they managed by Equitise? A: Equitise will always manage the Investors that transact through the Equitise Nominee. We are happy to facilitate interaction between the Lead or Company and Investors, though we do not require Company management or Syndicate Leads to meet their Syndicate Investors.
Q: How are the shares held? A: Shares are held by the Equitise Nominee on behalf of Investors.

Nominee

Q: Who is Equitise Nominees Limited? A: Equitise Nominees Limited is a New Zealand registered company (NZ Business Number: 9429042159025). It is a wholly owned subsidiary of Equitise Pty Limited, the parent company that runs the Equitise Investment Platform and its sole purpose is to hold and manage shares for Investors that execute an investment through the Platform.
Q: What is a nominee company? A: A nominee company holds shares on behalf of Investors. You are still able to vote in accordance with the type of shares you own, and you are still able to sell your shares.

The Equitise Nominee helps to simplify the shareholding structure of a crowdfunded entity. The Nominee will action any instructions you give to it, such as aggregating any votes and voicing them on your behalf.
Q: How are my shares held in the Equitise Nominee? A: The Equitise Nominee holds shares on bare trust for Investors. This usually flows through to the Investor for tax purposes. We are happy to provide further details upon request.
Q: What are the benefits of the nominee structure? A: The nominee simplifies the shareholding structure, and facilitates communication between the parties – a benefit to both Investors and Companies.

Investors benefit by:

  • Not having to worry that they won’t be updated as to a Company's progress.
  • Equitise provides Companies with a template report to be filled out biannually, and then provided to shareholders. Equitise helps keep Companies accountable to their Investor base.
  • Equitise will act in the interest of the Investors. Investors need not worry about raising concerns with the Company itself, as Equitise Nominees will ensure that they are heard.

Companies benefit by:

  • Having only one shareholder on their share registry – this means that they do not have to contact potentially hundreds of Investors to obtain consent for things such as "major transactions".
  • The nominee structure means that Equitise will contact your Investors and receive their responses on the Company's behalf, easing the administrative hassle of managing Investor relations.
  • If you are an Australian Proprietary Limited (private) company, the Equitise Nominee allows you to raise capital beyond the 50 shareholder limit, without becoming a public company.
  • In New Zealand, avoiding the Takeovers Act 1993, which applies to companies with 50 or more shareholders and 50 or more share parcels.
Q: How do I Vote? A: When there is a resolution (an event requiring shareholders to vote on whether they think a Company’s action is the correct path forward), Equitise will pass that information to Investors to vote on. Equitise then aggregates the votes and passes the votes to the Company. This simplifies the management of multiple shareholders, and allows the Company to interact with Equitise with whom it is already very familiar.
Q: What happens at an exit event? A: An exit event is typically when a Company sells or lists on a stock exchange. If your shares are held on trust by the Equitise Nominee, the nominee will dissolve allowing you to take your investment profits, less Carry, directly.
Q: What does the nominee structure look like? A: At financial close, cash flows under the Nominee structure are:

At an exit event, cash flows under the Nominee structure are:

Q: What are the fees for the Equitise Nominee? A: Equitise charges a Nominee Setup Fee for establishment and ongoing management of the Equitise Nominee, which is payable by the Company if their offer succeeds.
Q: Who is my main point of contact after investing? A: Equitise manages all communication between Investors and the Company, and any queries from either the Company or Investors can be sent to nominee@equitise.com
Q: Where can I find a Company's legal documents? A: When a Company makes an offer through the Equitise Investment Platform, it will upload any legal documents to the "Documents" tab of the offer page.
Q: How is Equitise able to facilitate offers for shares in Companies? A: In Australia Equitise is a corporate authorised representative for Laterne Securities, and as such has a wholesale Australian Financial Services License (AFSL). Equitise is a licensed intermediary in New Zealand, regulated by the Financial Markets Authority.
Q: Which Investors can a Company target through the Equitise Platform? A: Under our Australian AFSL a Company’s offer is able to be accepted by sophisticated and wholesale Investors from the Equitise Investor database. When Equity Crowdfunding is deregulated in Australia, non-sophisticated Investors will also be able to invest through the Equitise Investment Platform.

In New Zealand an offer made on the Equitise Platform can be made to the public (i.e. both retail and wholesale Investors). There is a cap in New Zealand for retail Investors, an offer can only contain a limit of $2.0m NZD per year per issuer.
Q: What is the Issuer Agreement? A: The Issuer Agreement is the legal document signed between Equitise and a Company before the Company launching a campaign on the Equitise Investment Platform.
Q: What is the Investment Agreement? A: The Investment Agreement is the legal document between the Company raising capital and the Investor that outlines the terms of the investment. This agreement sets out the fact that you are agreeing to buy shares in the Company and that the Company will issue those shares to you.

You can download a copy of your Investment Agreement when you click “Invest” and execute and investment through the Equitise Investment Platform. By entering your name in this digital investment process, you are digitally signing the Investment Agreement and also agreeing to the terms of the offer.
Q: What is the Company Constitution? A: The Company Constitution is the primary document outlining the rules governing a Company's structure and control, business activities, its Directors and shareholders.
Q: What is the Shareholders Agreement? A: The Shareholders Agreement is the legal document signed between the Company and Investors in the Company. The Shareholders Agreement sets out the agreed principles governing the interaction of shareholders, for instance the rights attaching to shares (such as voting rights) and different classes of shares (if applicable).

Investors may be required to agree to a Shareholders Agreement of some form when investing in the shares in a Company through Equitise, though not in all cases. When you execute the Investment Agreement by typing your digital signature in the "Invest" section of the Equitise Platform, you also automatically agree to the Company’s Shareholders Agreement if there is one.