Start-ups feel the love
Money Magazine Australia|May 2023
Early-stage ventures with a project to take to the world are turning to loyal supporters to raise the necessary funds
ELIOT HASTIE
Start-ups feel the love

Investing in companies you know is one of the guiding principles of billionaire and investing legend Warren Buffet.

Buffet famously says “never invest in a business you cannot understand” and you should stick to companies you’re familiar with because “risk comes from not knowing what you are doing”.

It’s the reason why hundreds of investors buy into popular brands such as Apple, Amazon and Australia’s major banks. But in many cases, investors are just a number to a corporation already well on its business track.

But not every company takes the stock market route; more and more of them are turning to their loyal fans and community to power their growth. That is what equity crowdfunding is, and it’s fast becoming one of the top ways for early-stage ventures to grow capital.

How does it work?

Equity crowdfunding is a type of investment strategy using securities, where a founder will issue the public shares in their company in exchange for an investment. Supporters believe it is democratising traditional investing by making investing in start-ups and early-stage businesses accessible to everyone.

It differs from other forms of crowdfunding: US-based Kickstarter, for example, is a crowdfunding platform enabling users to invest in a start-up in exchange for that start-up’s product on first release. Donation platform GoFundMe asks investors to donate funds, usually for a cause, with no expectation of a return.

With equity crowdfunding, start-ups and small to medium enterprises have an opportunity to raise capital while the public gets to invest in something they are passionate about.

From beer to travel

Diese Geschichte stammt aus der May 2023-Ausgabe von Money Magazine Australia.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der May 2023-Ausgabe von Money Magazine Australia.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS MONEY MAGAZINE AUSTRALIAAlle anzeigen
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 Minuten  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 Minuten  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 Minuten  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 Minuten  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 Minuten  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 Minuten  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 Minuten  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 Minuten  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 Minuten  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 Minuten  |
July 2024