ASIC Pours Cold Water On Crowdfunding
Australia faces a particularly acute dilemma. Entrepreneurial fervour is at its zenith. However, sources of funding for such activities remain in short supply.
In other parts of the world, solutions are being found. Crowdfunding is performing a critical role in democratising funding for interesting, creative products that may have had difficulty getting off the ground through more traditional forms of financing such as bank loans, angels or venture capital. The United States is embracing this by passing legislation to empower such activities.
But in Australia what do the regulators do? They issue a warning that crowdfunding could lead to fines and jail time?
Brilliant marketing move! If crowdfunding wasn’t already on every Australia entrepreneur’s mind before, it sure is now.