Crowd control: regulating crowd sourced equity funding in Australia, part 2

Key Points:

A new class of company, boilerplate fundraising documents and a new type of financial services intermediary are the main features of a proposed new fundraising regime for private companies.

In April we reported on the CAMAC discussion paper on crowd sourced equity funding (CSEF) and considered how other countries had already undertaken law reform to enable this alternative method of equity funding. We now know CAMAC's proposal for Australia, and it may be the most important capital raising measure for small companies since the 1984 advent (and 1992 demise) of ASX's second board.

If enacted, it would give innovators and entrepreneurs the ability to raise funds from small investors. In return, a wide range of small investors will get access to new investment opportunities.