Australia’s fintech industry wants to remove roadblocks for private company equity crowdfunding
Australia’s fintech industry has called for the fast adoption of stalled private company equity crowdfunding legislation to help more Australian small-to-medium sized businesses access the funds they need to grow.
Legislation supporting crowdfunding for private companies was introduced to the House of Representatives in September last year hasn’t progressed.
FinTech Australia chair Stuart Stoyan today called on Federal MPs to work together to give priority to the legislation when Parliament returns next week.
He also called on legislation to start immediately after passing the Australian Parliament rather than a six month delay.
The legislation would give hundreds of thousands of Australian businesses the ability to crowdsource up to $5 million a year from retail investors, capped at $10,000 per retail investor, in return for equity in their company.
The legislation will also build on the highly successful launch of crowdfunding for unlisted public companies. Earlier this month the first seven companies, including Equitise, Birchal and OnMarket, were licensed by corporate regulator ASIC to offer this service.
Digital bank Xinja, one of the first crowdfunds to go live following the licence approvals, raised more than $1 million — with half of that coming on the first day — through Equitise.
About 99% of Australia’s businesses are private companies.
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