13 September 2018

Small business and start-ups gain access to crowdfunding

Small businesses and start-ups will now have easier access to funding they need to grow, with the Coalition Government passing new laws that extend crowdfunding eligibility.

The Coalition Government understands that different forms of finance are particularly important for innovative, early-stage businesses that may have difficulty accessing funding from traditional sources.

Crowdfunding allows investors to make small investments in companies, helping them grow and create more jobs.

As part of the changes, proprietary companies wanting to access equity crowdfunding will no longer have to convert to a public company entity. Instead founders will be able to crowdfund while retaining the greater flexibility of the corporate model.

This is an exciting development for small businesses and start-ups and is another way that the Coalition Government is creating a policy framework that encourages innovation and supports small businesses to grow.

The extension will also increase the ability of individuals to access early-stage investment opportunities.

These new crowdfunding laws are part of the Coalition Government’s plan for a stronger economy, by backing business to grow and create jobs.