Crowd Sourcing for Commercialisation and Growth?

The ‘Commercialisation and Growth’ component of the new ‘Industry Growth Program’ will create a funding problem for many successful applicants, which could be solved by the company utilising the ‘Crowd Sourced Funding Equity Raising’ process to raise the company’s 50% share of the costs being partly paid by the Government.

The ‘Commercialisation and Growth Projects’ funding ranges from $100,000-$5million. The applicant is required to pay 50% of the project cost, which takes a project beyond a prototype to a fully proven system that is ready for full commercial deployment.

Companies with an annual turnover less than $25million can utilise ‘Crowd Sourced Funding Equity Raising’ as a capital raising source. Companies that are wanting to access any Industry Growth Program are required to have a turnover of less than and $20million, which makes Crowd Source Funding Equity Raising attractive for companies that are approved for support under the Commercialisation And Growth Projects segment of the grant.

To raise capital utilising Crowd Sourced Funding Equity Raising, the company needs to prepare:

• Business plan.

• Predictive accounting reports, incorporating budgets for each activity and the project development, cash flow forecast and projected balance sheets.

• Company valuation for the purposes of determining the number of shares to be allocated for the funds proposed to be raised.

• The crowd sourced funding offer document.

The directors and the leadership team need an understanding of the legislation that relates to Crowd Sourced Funding Equity Raising and in particular, an understanding of the role, duties and responsibilities of the businesses that have been appointed as a Crowd Sourced Funding Intermediary.

To find out  more about the capital raising opportunities that are available from utilising Crowd Sourced Funding Equity Raising, in particular, to raise the matching funding for an Industry Growth Program Commercialisation and Growth Project, contact Towers Business Development on 1800 232 088 or email .