Equity Crowdfunding is an exciting new way for high-growth businesses to seek funding from retail investors. This presentation outlines key details of the draft Australian Equity Crowdfunding regulatory framework, and what startups and investors can anticipate when it is released. *Announced on 3 Dec 2015, the Australian Government has presented the Corporations Amendment (Crowd-sourced Funding) Bill 2015 to the House of Representatives. Much of this presentation is based on the initial draft.

1. EQUITY
CROWDFUNDINGFULLY ALIGNED INVESTMENT
HIGHLIGHTS

2. Timeline
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Mar 2002
ASIC Class Order 02/273 allows
20 retail Investors to invest via
‘Business Mathing Portal’
1998
ASIC Class Orders reviewed
for ‘Retail Investors’
Sept 2013
CAMAC’s CSEF discussion paper
outlines the governments’ regulatory
and legislative blueprint
May 2014
CAMAC releases its findings on
CSEF in Australia, recommending
legislative changes
Dec 2014
Department of Treasury releases
its CSEF discussion paper
outlining three choices; CAMAC,
NZ Regulation, or Status Quo.

3. May 2015
Federal Government indicates in
the Budget CSEF to be legislated
in the 2015/16 financial year
Dec 2015
Corporations Amendment (Crowd-
sourced Funding) Bill 2015 first
reading.
April 2016*
Bill passes both houses, later
recieving Royal Assent
Nov 2016*
ASIC finalises Crowdfunding
Platform Procedure, enabling
intermediaries to apply for an
ECF AFSL license
Dec 2016*
First Equity Crowdfunding raise is
completed via an ECF AFSL
licensed platform
Timeline
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4. 3 Core Concepts
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Get Funded Offer Template Advertising
Crowdfunding Equity … it’s a short form off-market IPO

5. It’s About The Money
Australia compared to the US Equity
Crowdfunding (Title III)
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USA($USD)
$5,000,000
Via equity crowdfunding, suitable
Australian public companies can raise
up to $5m from retail investors.
$1,000,000
Via equity crowdfunding, American
companies are capped at $1m via
equity crowdfunding laws.
Australia ($AUD)

6. $
$$$
$$ $
Offer Template
Protracted prospectus versus
short and sweet offer document.
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7. Advertising / Soliciting Funding
You know you want it.
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Investors
You Friends / Family
20
Crowd / IPO
500+
Angels VC
50

8. Investor Friendly Focus
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• Investment capped at $10,000 per issuer per annum*
• 5 day cooling off period (or 1 month for defective offer documents)
• Minimum mandatory disclosure via standard offer document*
• Liquidity, Risk and Dilution Warnings
• Australian Public Company
• Issuing one type of share only
• Related Party Lending prohibition
• Open forum (live and suspended offers) & Live offer document
• Identity verification (directors, investors etc)
• Upfront Fee disclosure
• Australian Financial Services Licence Required for Platforms
• Corporations Law Penalty Regime
• 5 year sunset on issuer concessions
Crowdfunding – It’s An Investment Thing
Headline1
Structural2
Transparency3
Oversight4

9. Only after engaging flight mode
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Fuel Your Start-up
• Affiliation
• Customer / SupplierAdvocacy
• Network effects / Localisation
• Market awareness
• Validation
Why Crowd First?
• Annual General Meeting Requirements
• Disclosing Entity Rules
• Audit (if >$1 million raised)
• Paper Reporting of Financial Statements
5yr Relief for Eligible Companies
• Co-Investment integration with
Angel’s, VC & Industry
• 5 MillionAnnual Funding Cap
• Advertising Concessions
• Standardised Offer Document
New funding framework

10. • Facts about the company
• Share structure
• Financial statements
• Facts about the CSF raise
• Mandatory risk warnings
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AKA Pitch Deck
Tailored Disclosure Document
Requirements for Offers

11. WEB
TWITTER
FACEBOOK
LINKEDIN
www.bankrolla.com
@bankrollas
www.facebook.com/bankrollas
www.linkedin.com/company/6633634
www.pinterest.com/Bankrolla/
www.instagram.com/bankrollas
PINTEREST
INSTAGRAM
Get amongst it

12. 12
Desk by Krisada from the Noun Project
Beer bottle by Raz Cohen from the Noun Project
Cocktail by Okan Benn from the Noun Project
Gas pump by Iris Sun from the Noun Project
Group by Blake Thompson from the Noun Project
Leaves by Pham Thi Dieu Linh from the Noun Project
Statue of Liberty by shimaru from the Noun Project
Artwork Attribution Thanks Created with care by
William Neill
Co-Founder
Bankrolla
wneill@bankrolla.com
@williamneill
Matthew Pinter
Co-Founder
Bankrolla
mpinter@bankrolla.com
@matthewpinter_
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