For Business Owners
Equitise is an Australian & NZ equity crowdfunding site
This independent review has been written for startups & growing companies who are considering using Equitise to raise money with equity crowdfunding.
- What Is Equity Crowdfunding?
- Best Equity Crowdfunding Sites From Around The World
- How To Crowdfund A Business Through Equity Crowdfunding – Step-By-Step
In this Equitise review, you will learn about:
- Equitise’s Attitude To Curation
- Which Companies Can Use Equitise
- How Equitise Helps Business Owners
- What Is Unique / Different About Equitise
- Advice – How To Raise Money Through Equitise
Platform Website: www.equitise.com
Equitise Attitude To Curation:
Equitise favors more of a traditional venture capital approach. They don’t list all companies that apply to their site – rather, they screen out many of those that apply.
This means that before a company gets to go public, Equitise acts as a gatekeeper. They rigorously analyse the potential-crowdfunder’s business model, look deeply into the expertise of the team members, and question the valuation… all of which leads to a lot of companies never making it to the “go live” stage. It closely mirrors the sort of work that professional investors take before investing.
Through this approach, members of the public can gain access to a new investment class that was once the exclusive preserve of sophisticated & high net-worth investors. Being able to effectively “copy” the strategy of expert investors also means that the retail investors can become more comfortable investing in new kinds of companies.
The first question Equitise always asks is whether they can help the company. According to Equitise, “we don’t want to take founders down a path which will not ultimately amount to anything”.
Learn How To Succeed With Equity Crowdfunding
Equity crowdfunding offers amazing potential for startups and growing companies, but it is also a very steep learning curve.
In this step-by-step book, you will hear from the world’s leading platforms and from successful past crowdfunders from around the globe, with all their tips and tricks.
Learn how they did it, and how you can do the same.
Which Companies Can Use Equitise:
Equitise favors business models which have a linear, simple message. For an equity crowdfunding offer to get substantial traction with the general investing public, it needs to be an investment thesis which is reasonably understandable by the intelligent amateur investor. Consumer and B2C businesses are good examples.
Equitise do not generally do early-stage biotech ventures, because their message is too complex. For similar reasons, they do not typically host speculative mining projects, due to the deep level of expertise an investor would need to have to be able to evaluate the project’s merits. However, there are always exceptions and Equitise is happy to assess each individual project on its merits.
Equitise claim to be able to help from seed stage to IPO: “Seed, series A, series B, series C… we do it all”, reads their website. It means a very broad range of business stages are potentially possible – startups are welcome even if it is the first time they have raised outside funding. Equitise can aslo help facilitate expansion capital for later-stage ventures.
Notably, Equitise are licenced in both Australia and New Zealand, meaning they can help companies in both countries. Companies raising money under the Australian equity crowdfunding regulations need to domiciled in Australia.
Equitise public offers are open to investors over the age of 18 in Australia and New Zealand.
Raise Size Restrictions:
Equitise wants to make sure the companies they work with raise a meaningful0enough amount of capital for them to execute on their big plans. As such, they set the following “minimum funding goals” for the Australian companies they work with:
- At least AU$500,000 for public unlisted companies
- At least AU$100,000 for proprietary limited companies
Maximum amounts for “public offers” – i.e. those open to both retail *and* sophisticated investors:
- AU$5 million per year for public offers in Australia
- NZ$2 million per year for public offers in New Zealand
Individual investors are allowed to invest from as little as A$50 per campaign. This level has been set to balance the desire of some companies who want to set a very low barrier to investors so they can achieve extremely broad shareholder spread, with a high enough amount so that people are thinking of their cash contribution as an *investment*. Even though A$50 is possible, this can be increased by the company raising capital, depending on their objectives. Equitise generally advises that companies set a minimum of at least A$500 for public-facing offers.
Take The Quiz – Are You Ready For Equity Crowdfunding?
Equity crowdfunding can raise 6 – 7 figures of investment for startups & growing companies, without banks or VC.
But is your company ready to launch?
This short multi-choice assessment has been created to give an indication of whether your company is fit for funding.
All answers are kept completely confidential.
How Equitise Helps Business Owners:
Because they are more selective about the companies they work with, they can dedicate more internal resource to the companies they ultimately feature on their platform. This means that business owners can raise the money they need faster. More specifically, Equitise can help companies bring their Investment Memorandum together. This is important, because they tend to require lengthier disclosure in their offer documents. Be aware Equitise may charge an onboarding fee of between A$5,000 – A$10,000 to offset the costs involved in this hands-on preparation work.
Equitise want to help the companies they work with to get value from equity crowdfunding, beyond the money. Building a tribe of passionate investors can lead to new opportunities with customers, suppliers and partnerships, so they do everything they can to helo startups & growing companies realize those benefits.
What Is Unique / Different About Equitise?
Equitise sees the integrity of their offers as one of their key differentiating factors vs. other Australian equity crowdfunding platforms. They understand they have a responsibility to their retail investors, so they bring retail investors in on the same terms as bigger investors, which ensures everyone is treated fairly regardless of the quantum of capital they are able to invest. From the perspective of business owners, this treatment results in a better reputation for the platform among investors.
Also, Equitise prides itself on the depth of their networks. They have an investor database of over 20,000. Their deeper on-the-ground connections also mean Equitise tend to attract bigger investors to their platform and are the largest equity crowdfunding site in Australia (as of the time of writing).
Finally, they point to their more hands-on service. To give their campaigns have the best possible chance of success, Equitise make a significant investment of time and energy into every company they work with. They have promotion and P.R. toolkits to help with this, along with a fulltime marketing team. Further, the Equitise team have pedigrees in private equity, corporate finance and capital markets and can assist with the planning and preparation of your capital raise.
Advice – How To Raise Money Through Equitise:
Get clear on your goals. Why equity crowdfunding, and why Equitise? Equity crowdfunding isn’t right for every company – so make sure you educate yourself about what’s involved. Choosing the right equity crowdfunding platform to work with is one of the most critical decisions that businesses can make, so take your time to do a thorough evaluation of all your options. Researching some of Equitises’ past crowdfunding case studies will be a great step to take before you talk to them for the first time.
Companies which want to use Equitise should build a crowd, in advance of starting crowdfunding. The best success rate for equity crowdfunding always comes from exisiting connections. So, if you are thinking about crowdfunding on Equitise, start building your community *now* and deepening your engagement with them. This will pay off in two ways:
- Equitise (and other platforms) will be more willing to work with you if you can show the strength of your network
- It will boost the chances of your campaign succeeding (and exceeding) the funding goals you set
Finally, learn from the best crowdfunding case studies so that you can replicate their success. Absorb as much information as possible so that you are prepared to crowdfund!
You’ll learn how to choose the right platform, build a crowd, and raise game-changing money.
Join The Free Equity Crowdfunding Training
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