FAQs

General

What is equity crowdfunding?
Equity crowdfunding is the process whereby people (i.e. the ‘crowd’) invest in a company in exchange for shares in that company. A shareholder has a financial stake and therefore a share in the company’s success should it perform well.
Equity crowdfunding is an easy and accessible way for people to invest in companies via an online platform. The platform connects investors and companies and therefore provides a more efficient way to raise funding than traditional methods.

These investment opportunities have traditionally been limited to established affluent investors and venture capitalists. Now retail and eligible sophisticated and professional investors can access startups and growth companies that they believe in through a change in the Australian Corporations (Crowd-sourced Funding) Act 2017.

We launched AgCrowd to provide every investor with the opportunity to make the world a better place by supporting impact-focused companies that are transforming global agriculture and energy.
AgCrowd is licenced to host investment offers open to all types of investors (retail, sophisticated and institutional investors). The offering company prescribes the minimum investment amount.
AgCrowd is a specialist in agriculture and energy. We support industries that we believe will be foundational to the global economy’s future. We have a broad scope within agriculture and energy, you will see everything from new sources of sustainable food to energy generation technology on our platform.
AgCrowd does not charge any direct fees to investors.

Companies that raise money with AgCrowd will typically be charged:
  1. Fixed administration fee: covers the cost of preparation (CSF offer document, transaction costs, due diligence, EOI) on AgCrowd’s platform.
  2. Success fee: 6% (plus GST) of the total funds raised in the offer.
Specific fee details may vary and will be outlined in the offer document for each company.

Investors

What constitutes a retail investor?
Retail investors are defined as anyone over the age of 18 in Australia. The crowd-sourced funding legislation imposes an investment limit for retail investors of $10,000 per company.
Sophisticated investors have a gross income of $250,000 or more per annum in each of the previous two years or net assets of at least $2.5 million. In order for AgCrowd to verify you are a sophisticated investor, you will be required to provide AgCrowd with a s708 certificate from a qualified accountant through your profile page. Please note sophisticated investors are not entitled to cooling off rights offered to retail investors.
The minimum investment parcel is the minimum amount an investor may invest in a given offer. The minimum investment parcel is set by the company raising funds.
Investing through the platform is simple: first sign up and create your account. Then you can browse investment opportunities. You can make an investment in a live deal via the platform. The law requires that you consider the offer document and all risk warnings before investing.
Once you make an investment, you will transfer funds into AgCrowd’s trust account where we will hold your funds until the offer is complete. If the campaign fails to reach its minimum level your funds will be refunded in whole. If the offer successfully reaches the minimum investment level, your funds will be transferred to the issuing company and your shares will be issued.
If you are a retail investor you have the right to request a refund within 5 business days of making your investment (“cooling-off period”). If the offer is found to be defective you will receive a full refund. If an investment offer contains an error and a new offer document is issued, retail investors have 30 business days to request a refund. If the offer fails to reach the minimum level of investment all investors will receive a full refund.
Shares in privately held companies are typically highly illiquid. This is because funding is typically used to support a company’s growth with the objective of increasing the company valuation during this period.

Investors in startups and growth companies aim to make a profit from their investments when they sell part or all of their portion of ownership during a liquidity event, such as an IPO or acquisition. It may be years before an opportunity to sell your shares transpires.

Companies

Who can use equity crowdfunding?
You can take our eligibility test here.
Early-stage companies with high growth prospects are well suited to equity crowdfunding as they have the potential to generate strong returns. There are many new and exciting ways to use equity crowdfunding such as community-owned renewable energy assets.

Equity crowdfunding enables companies to connect with their current or future customers. Companies are able to build and utilise their supportive customer base by offering them the opportunity to invest, whilst simultaneously using the fundraise as a marketing campaign.
The CSF legislation allows a maximum of $5 million AUD to be raised via a licensed platform within a 12 month period.
  1. Get in touch: reach out to the AgCrowd team via email (james@agcrowd.com.au) or by sending a message to our team here.
  2. Vetting: after getting to know you and your business we will make an assessment to see if your company is a good fit for AgCrowd.
  3. Due Diligence: once both parties are comfortable and want to proceed we will begin AgCrowd’s due diligence process outlined on the How it Works page.
  4. Plan your campaign: together we will build a strategy on how to maximise value through your campaign.
  5. Go live: open your offer live for investment.
Yes, you can choose the minimum and maximum investment parcel sizes.
No, you can run a sophisticated investor only campaign on AgCrowd’s platform.
If the minimum level of investment isn’t reached then all investor funds are returned. It is important to consider this when setting your minimum investment amount.
The maximum offer period permitted is 90 days, however companies often use a shorter timeframe than this.