Equity Crowdfunding in Australia and New Zealand
International Company and Commercial Law Review, Vol. 29, No. 9, pp. 571-589, 2018
18 Pages Posted: 24 Oct 2018
Date Written: April 20, 2018
Equity crowdfunding allows small‐to‐medium enterprises to raise funds from investors (usually contributing small amounts of money) through an internet platform operated by a third-party intermediary. A key advantage of the process is that it provides access to equity for companies that would otherwise find it difficult to raise funds from the public or borrow from the traditional financial sector. However, the process raises a number of challenges, including the risk of financial losses for vulnerable retail investors. This article analyses the approaches to equity crowdfunding adopted in Australia and New Zealand in light of the potential for cross‐jurisdictional use of the framework. The article aims to assist those with an interest in equity crowdfunding to navigate each of the regimes by highlighting some of the key features of each as well as important similarities and differences regarding these key features.
Keywords: Crowdfunding; Securities Regulation; Shares; Investor Protection
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