In March, Australia's Parliament enacted the Corporations Amendment Act 2017, providing a framework for companies to raise capital via equity crowdfunding.
Earlier this month, that legislation was updated. The proposed amendment allows smaller, unlisted companies to crowdfund up to A$5 million a year and allow investors with less than $2.5 million in assets to buy securities through crowdfunding.
The update is being heralded as positive and timely news by Australian crowdfunding platforms, who believe there is a huge demand in Australia for crowdfunding at a retail level.
TAB lists 66 Australian platforms across all funding types and tells us that 3 Australian equity crowdfunding platforms (Estate Baron, Property Planner and Seedrs) have raised £44.4m in 2017 to date, with other equity platforms - like Equitise and Pozible - supporting the government's move.
Positive developments in crowdfunding are being seen in Europe, Asia and South America. This news from Australia is further evidence that the democratisation of business finance continues to spread throughout all continents of the globe.