Crowd sourced equity funding (CSEF) – Australia joins the global discussion

The Federal Government's Corporation and Markets Advisory Committee (CAMAC) recently released a discussion paper on crowd sourced equity funding (CSEF) as part of its brief to examine Australian regulation of CSEF. For start-ups and other possible stakeholders in CSEF, CAMAC's discussion paper is a promising sign that Australia is heading for a possible change in its regulation of CSEF, keeping pace with the US and Europe.

CSE-What?

Many will already be familiar with crowdfunding: a person with an idea for a project (the Fundraiser) places that idea on a website (or Platform) as a way of seeking financial support from others on the internet (the Investors). In return for parting with their monetary contribution, the Fundraiser offers Investors a reward, usually a product or other expression of gratitude.