A big milestone was reached this year in the Australian crowd funding community as Kickstarter, the largest crowd funding platform, opened its doors to Australia based entrepreneurs. Previously, Australian entrepreneurs had to rely on other platforms such as Pozible or register as a US/UK based entity. In 2013 alone, it is predicted that crowd funding platforms will raise US$5.1 billion worldwide.
Currently, crowd funding platforms, accessible to Australians, allow investors to contribute small sums of money by way of a donation or in exchange for goods or services that the entrepreneur is seeking to commercialise. Debt or equity based funding is yet to be permitted in Australia as the corporate regulator, ASIC warns that extensive disclosure may be required where funds are “pooled or used in a common enterprise to produce financial benefits or benefits consisting of interests in property.”
However, this may soon change given that the debt and equity models are currently being reviewed by the Corporations and Markets Advisory Committee, with the report expected to be published in April 2014.
Biggest Aussie deal: A computer strategy game being developed by the Brisbane-based 5 Lives Studios raised over AU$800,000.