Crowdfunding is when a group of individuals pledge or donate towards a common project goal outlined by the creator or entrepreneur. As crowdfunding is mostly conducted online, it has grown with the rise of social media.
Social media outreach enables the campaign creator to spread the word and passion for their project throughout their networks and beyond.
Reward based crowdfunding is when the campaigner offers something in exchange for monetary support - often a pre-order of the product or 'experiential' rewards. Many creatives and entrepreneurs in Australia and overseas have tapped into the passion of the crowd to get their projects off the ground.
Although creative and entrepreneurial crowdfunding projects tend to receive the most media coverage, when it comes to people-powered business, equity-based crowdfunding has attracted much interest.
In September 2017 the Corporations Law Amendment (Crowd-sourced Funding) Act 2017 came into effect, with local Equity crowdfunding platforms able to apply for AFS licences with an authorisation to provide CSF services to companies. The first licences were issued in November 2018. You can access the ASIC regulations for companies here
Author of Crowdfund it!
If you would like someone to assist you to develop your Crowd Funding campaign contact Crowdfunding Strategist Anna Maguire
Australia's first Crowdfunding PR and video production company has launched to ensure your Crowdfunding campaign launches the right way! CROWD LAUNCH
To find out more about crowdfunding, including comprehensive chapters on how-to, buy a copy of Crowdfund it! in print or digital editions directly from the publisher edita.