What is a Crowd Funded capital raise? The government introduced legislation in 2018 that allowed retail investors to invest (from $50 to $10,000) in small companies raising capital in 2018. Previously strict ASIC guidelines generally meant that smaller investors could not participate in start-up/scale-up tech businesses (unless through IPO offers which were expensive and typically not used by smaller growing businesses). For more information see here. High Net Worth investors can still participate in the crowdfund and the investor does not pay anything to participate.
The Adviser Ratings Raise: The Adviser Ratings Board initiated a capital raise to help supercharge the business and respond to the compliance and regulatory product opportunities that have come out of the Banking Royal Commission. We have raised $1m from existing HNW shareholders and are running the crowd funded raise in parallel to the institutional offer and at the same price. We are raising through the Birchal crowdfunding platform who recently closed the largest Australian crowd funded campaign which was the Shebah female ride sharing app.
Our past and our future: We sold $1m of compliance/regulatory/distribution product in calendar 2018 to 25 Tier 1 clients and continued to build the business with only 2 previous formal capital raises. We are forecasting revenues of $3.2M next financial year (the final investment memorandum will be shared during the offer round) 20,000+ clients left reviews with circa 5,000 advisers engaged on our platform and we hve connected thousands of multiple advisers with consumers – all at nil cost to the consumer. This is only the beginning on what we can do to improve the sector. The funds raised will be used to refine our product set, build the Licensee rating platform and drive institutional product sales. This market desperately needs help in managing its compliance and regulatory costs post the Banking Royal Commission and we have already secured sales with some of the leading institutions in the country and world.
Our mission and promise: Our reason for being and our DNA is to support the delivery of the best advice to consumers. We want to make financial advice more accountable, accessible and affordable for all by fostering valuable outcomes for all participants, transparency, integrity and trust.
So please join us on the journey and capitalise on the regulatory reform that is changing the wealth sector for the better. Look at our crowdsourced funding information page here. We will not be officially opening the raise for funds for another few weeks, but those who join the expression of interest will be given higher priority to participate in the raise. Please speak to your financial adviser to ensure this and any investment is right for you and always consider the general CSF risk warning and offer document before investing.