Crowdfunding platforms probably won’t replace investment banks, but they will shake things up a bit
Last year, Australia’s crowdfunding platforms raised 116 per cent more cash than the year before.
The $31.2 million total easily surpassed 2018’s total of $14.4 million.
A handful of deals raised significant publicity, like women-only rideshare Shebah and neobank Xinja.
“What we like is that it [crowd funding] is democratising what is traditionally an exclusive sector – and that is wealth and investment,” AgUnity chief operating officer Angus Keck told Stockhead last year.
“Usually you need to be a high net worth [investor] or a family office to get to make these [early-stage] investments.
“Now it isn’t a bad thing to be one of these, but a regular person with some money who is passionate about a product can participate in investing in this product – becoming part of that journey.”
Login to these platforms and you’ll find there’s no shortage of deals in 2020, including some for upcoming IPOs.
OnMarket, for example, is listing thedocyard and ARMnet – two technology stocks which will list on the ASX next month.
And yes, even investment banks are beginning to use these platforms.
December’s IPO of Limeade (ASX:LME), spearheaded by Macquarie and Moelis was also conducted through on OnMarket. So was Happy Valley Nutrition (ASX:HVM) – led by Bell Potter and Shaw & Partners.
These listings do not count among the equity crowd funding figures; banks still led the IPOs, they just used platforms to remove the hassle of paper forms.
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