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

See all articles by Steve Kourabas

Steve Kourabas

Monash University - Faculty of Law

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: April 20, 2018

Abstract

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

Suggested Citation

Kourabas, Steve and Ramsay, Ian, Equity Crowdfunding in Australia and New Zealand (April 20, 2018). International Company and Commercial Law Review, Vol. 29, No. 9, pp. 571-589, 2018. Available at SSRN: https://ssrn.com/abstract=3259664

Steve Kourabas

Monash University - Faculty of Law ( email )

Wellington Road
Clayton, Victoria 3800
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

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