Recently, crowdfunding has played an increasingly significant role in enabling companies to raise capital and could, in time, become a viable alternative to conventional sources of venture capital.

Crowdfunding originated as a way of raising small amounts of money from a large number of individual contributors through the use of online funding platforms to support community, arts and humanitarian projects. Individual contributors generally receive no direct financial reward or interest for their contributions.

For information on crowdfunding activities in New Zealand refer to a recent Bell Gully client update which considers:

  • the potential legal issues currently surrounding crowdfunding activities in New Zealand;
  • how the Financial Markets Conduct Bill and the Financial Markets Conduct Regulations Discussion Paper could pave the way for the licensing and regulation of crowdfunding activities in New Zealand; and
  • the contrasting positions in the US and Australia.

Click here to read the update.