By Trent Le Breton
You may have read in the press about an increasingly popular
method of raising funds for start-ups known as 'crowd
funding'. It is particularly popular fundraising technique for
those in the IT industry, especially software designers and
developers, and is generally conducted via a web-based platform
(Pozible, iPledg and Project Powerup are a few Australian
examples).
The usual method is for the start-up to post a description of
their product, work or idea on the web and to invite
'supporters' to donate cash, often in consideration of a
promise to deliver some kind of 'gift' to the supporter
(such as sample products) in due course.
ASIC REGULATION
With the growth in popularity of such sites, ASIC has published
a
media release to provide guidance to crowd funding
promoters.
