Aussie turns to equity crowdfunding in lieu of Gov support for Pandemic Startups
October 13, 2021
The Crowd Source Funding (CSF) industry has proved to be resilient and increasingly popular for Australian small businesses and startups.
During the pandemic, I didn’t have funding options available from the Government as a new business and saw other brands were having success with crowdsourcing so it was a no brainer.”MELBOURNE, VICTORIA, AUSTRALIA, October 13, 2021 /EINPresswire.com/ -- The Crowd Source Funding (CSF) industry has proved to be resilient and increasingly popular for Australian small businesses and startups, especially in the midst of the COVID-19 pandemic as more people turn to the rapidly growing sector to raise capital.
— Dr Ali Karami
The industry’s biggest player, Birchal, reported a 620 per cent increase in successful crowdfunding offers completed nation-wide in the June 2021 quarter, with about $18.7 million raised from over 10,000 investors across 22 campaigns.
The total amount raised in Australia across all crowdfunding platforms for the financial year ending in 2021 increased 125 per cent on the previous financial year to $46 million according to Equitise Industry Report 2021.
Since 2018, Birchal has helped over 97 Australian businesses raise over $65m from their most passionate customers and fans online. Alcohol brands, innovative food products and Fintech startups prove to fare best at raising money online when they need a boost.
Melbourne functional beverage brand NudeHerbs is expecting to take home between $100,000 and $500,000 from superfans to help with a nationwide rollout through a Birchal campaign which is now open for EOIs.
“NudeHerbs tonics are the first Australian health beverages made from naturally brewed herbs and flowers using recipes that I’ve been developing for over three years. Raising capital can often distract startups like mine from growing their business or scaling up, but through equity crowdfunding options it’s easier to engage new investors and successfully fund a project,” says Dr Ali Karami, Founder of NudeHerbs and Food Scientist.
“During the pandemic I didn’t have a lot of funding options available to me from the Government as a new business and platforms like Birchal offer a team that specialises in crowdfunding, law, technology and equity capital markets so that I could focus on my customers and fast tracking our business plans. I saw the success that other brands in the food and beverage category were having with equity crowdsourcing so it was a no brainer to start the process.”
Equity crowdfunding lets people put money behind start-ups and more mature private companies. Unlike platforms such as Kickstarter or Pozible, backers receive shares in the company in return for stumping up cash.
“We’re genuinely excited about offering our network this opportunity as we continue our mission to bring ancient wisdom and medicine to modern societies. Disrupting the food and beverage market with naturally delicious and ethically produced products that create powerful results for wellbeing has always been our top priority."
The campaign will run in two phases; three weeks of EOI and 3 weeks of actual investment period with each investment expected to range from $100 to $10,000.
Find out more via: www.birchal.com/company/nudeherbs
NudeHerbs Equity Crowdfunding 2021