Australian consumers have invested tens of millions in early-stage start-ups since the practice was approved in 2018, but experts advise caution
Last month, eco-friendly cleaning product company Zero Co broke a record. In just 47 minutes, it raised $3m using equity crowdfunding – the fastest raise ever seen in Australia.
Zero Co isn’t the only company who’s been using equity crowdfunding to raise capital. While equity crowdfunding has been open to proprietary companies in Australia since 2018, it’s boomed during the pandemic. You may have seen your favourite retreat, ethical beauty brand or plant-based food company spruiking it as a way to support their mission. The largest crowdfunding intermediary, Birchal, has raised over $70m for over 100 companies since their launch. So what, um, is it?
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