FAQs

What is Equity Based Crowd Funding?

Equity based crowdfunding allows investors to take equity in a business in exchange for cash investment. As a registered VentureCrowd investor, you can invest in our pre-screened deals through a trust managed by VentureCrowd.

Who is VentureCrowd?

VentureCrowd is the online arm of Artesian Venture Partners, one of Australia's most reputable venture firms, and Australia's premier equity based funding platform. We empower a new generation of investors to access and invest in Australian established high growth businesses and early stage, high growth potential startups.

VentureCrowd provides unique access to a new asset class - early stage securities. While traditional crowd funding models typically provide investors with a future reward or product from a business in exchange for cash, VentureCrowd allows investors to exchange cash for an equity share in their chosen business.

VentureCrowd has unrivalled access to the most exciting startup businesses in Australia via our partners, who pre-screen all businesses before they can list for investment. Our partners include a broad range of:

  • Angel groups
  • Incubators
  • Accelerators
  • Venture capital firms
  • University commercialisation programs
  • Digital agencies
  • Corporate partners

This ensures we offer the most diversified selection of investment opportunities to our registered investors.

How is VentureCrowd different to other crowdfunding platforms?

VentureCrowd takes crowdfunding to the next level by moving away from the traditional crowdfunding model that offers investors a future reward or product for their investment. The only transaction that occurs through our online platform is in the form of equity exchanged for cash investment.

Who is behind VentureCrowd?

VentureCrowd is the online arm of Artesian Venture Partners, one of Australia's most reputable venture firms. Artesian Venture Partners is the fund manager behind:

This allows us to give investors peace of mind that they are investing alongside some of Australia's most trusted players.

  • Sydney Angels Sidecar Fund
  • Slingshot Accelerator Fund
  • BlueChilli Venture Fund, and
  • Artesian Venture Capital Fund of Funds

Artesian Venture Partners' parent entity, Artesian Capital Management, is an alternative investment management business that spun out of the ANZ Banking Group's capital markets business in 2004. Artesian's founding partners purchased ANZ's stake in 2005 and since this time, the company has been fully owned by partners and staff.

Artesian Venture Partners focuses on making principal investments and managing funds for seed-stage and early-stage ventures from their offices in Sydney, Melbourne, and Shanghai. Artesian Capital Management also manages credit relative value investment strategies from its New York, London and Singapore offices.

Read more about Artesian Venture Partners and Artesian Capital Management. .

What are early stage securities?

'Early stage' refers to the stage of development of the company in which the security is held. Generally, at an early stage of development, a company will have identified a consumer need or an opportunity in the market, created a minimum viable product or service to address that opportunity and will be in the process of implementing its sales and expansion plans. While such companies will already have some customers, at this stage, they are likely to be relatively few.

Early stage securities are a sub-category of the equities asset class, a growth asset class. They involve part ownership of a company, enabling investors to share in both the profits (income generation) and the future development (capital growth) of the company.

Early stage securities demonstrate a particular risk and return profile that is different to listed equities. They are high risk and high return potential assets, and are generally illiquid until the company is the subject of an IPO or a trade sale.

The likelihood of generating income through dividends from early stage securities is relatively low because early stage companies tend to reinvest any profit generated into the further development of their business.

How do I become an Investor on VentureCrowd?

To register, simply apply online, and a member of our Investor Relations team will qualify your application.. Once registered, you will be given password protected access to the full VentureCrowd site where you can take advantage of the many investment opportunities.

What is the benefit of investing in early stage securities?

VentureCrowd offers you an unrivalled opportunity to take more control of your investment portfolio and invest in Australia's newest business talent with a relatively modest investment.

What are the risks involved in investing through VentureCrowd?

Investing in early stage securities involves a number of risks. Investors wishing to invest in this asset class should take the time to understand the risks and have a strategy in place for mitigating those risks.

Investing in early stage securities involves a number of risks. Investors wishing to invest in this asset class should take the time to understand the risks and have a strategy in place for mitigating those risks.

How do I invest in the companies listed on VentureCrowd?

Once you are a registered investor, you can select the business/es you want to invest in then specify the amount you wish to invest. The monies will then sit in a trust managed by VentureCrowd and will be invested into that business on your behalf.

Is there a minimum or maximum amount I can invest?

The minimum amount you can invest is $1,000 and there is no maximum. However, because early stage securities are a high risk and high return asset class, we recommend that you do not invest all of your available allocation to a handful of companies. Instead, split your allocation across a widely diversified portfolio.

How do I know my investment is safe and will reach the intended business?

We pre-screen all our businesses and entrepreneurs to ensure they are who they say they are, before they can list on VentureCrowd. When you make an investment, your money will sit in a trust managed by VentureCrowd until the company's investment target is achieved. Once the target and deadline is met, VentureCrowd will invest this money into your chosen business on your behalf.

What are my legal rights and obligations in respect of an investment?

When you opt to invest in a company listed on VentureCrowd, you will enter into an investment contract with VentureCrowd which will detail your legal rights and obligations. We encourage you to read the investment contract and, if you are unsure of its implications, to obtain legal advice before making an investment through VentureCrowd.

What fees do I incur by investing in a business listed on VentureCrowd?

There is no charge to register as an investor on VentureCrowd. If a company in which you have made an investment is sold in a trade sale, or is listed on a securities exchange, there is a 20% performance fee on any profit made payable to VentureCrowd.

What kind of businesses can apply for VentureCrowd Funding?

Generally, if you have a product or service that has been developed to the point where you are currently or about to start promoting and selling that product or service, then you are ready to think aboutVentureCrowd funding to help take your business to the next level.

How much can I raise for my business on VentureCrowd?

There is no minimum or maximum amount you can raise through VentureCrowd funding. However, you will need to disclose the total amount of the current raise and allocate a set amount to VentureCrowd.

How do I list my business for investment on VentureCrowd?

Start by registering your business on VentureCrowd. To enable us to determine whether your company is suitable for investment through VentureCrowd, you must complete the application process in full to be considered for equity crowdfunding.

If you are a company affiliated with a VentureCrowd approved partner - which include some of Australia's leading angel groups, incubators, accelerators, venture capital firms, universities, digital agencies and corporate partners - you will be automatically approved to list on the site. View more information on VentureCrowd’s partners..

In addition, if you are a company that has received a relevant State or Federal Government grant, you will be automatically approved to list on the site. View a complete list of eligible grants recognised by VentureCrowd.

How do I manage my capital raise on VentureCrowd?

Once your company is listed on VentureCrowd you will be given password protected access to your own Company Dashboard.

Through the Company Dashboard, you will be able to:

  • Edit your company profile
  • Track the progress of your VentureCrowd capital raising campaign
  • Share the deal with your networks
  • Communicate with your stakeholders (including answering questions about your company from VentureCrowd investors)

How does the due diligence process work?

Your deal profile should contain all information and documentation that is relevant to your company and your capital raising campaign. For example, if you have a business plan, information memorandum or term sheet prepared, those documents should be included on your deal page.

VentureCrowd investors will be able to follow the deal and ask questions of you as part of the due diligence process. These questions and your answers will appear in a Q&A feed that can be seen by all VentureCrowd investors who are following your deal. This allows you to efficiently manage the due diligence process and all key stakeholders through one simple tool.

How are the deal terms negotiated?

VentureCrowd wants to make it as easy as possible for you to close your capital raising round.

Therefore, rather than separately negotiating each of the deal terms with you, VentureCrowd investors invest on the basis of a 'most favoured terms' clause. This means our investors have the benefit of the most favourable terms you negotiate with the lead external investor(s).

How does the investment process work?

Once the full VentureCrowd allocation has been reached, and subject to any conditions precedent contained in the Term Sheet for the deal, the funds will be transferred to you by a trust managed by VentureCrowd less VentureCrowd's fee (see below).

VentureCrowd enters into all of the legal contracts with your company on behalf of our investors, including the Term Sheet and the Subscription & Shareholders' Agreement.

VentureCrowd then manages the on-going relationship between our investors and your company, so you only ever need to deal with one shareholder - VentureCrowd.

What fees are payable?

There is no charge to register your business on VentureCrowd or to manage your capital raising campaign through your Company Dashboard.

At the time the funds raised through VentureCrowd are transferred to you, a fee equal to 5% of the funds raised on VentureCrowd is charged.

Do I need to specify a deadline for the close of my capital raise?

Yes. Every company registering for investment must specify a deadline to achieve the required amount (usually 3 months).

We believe capital raisings should be focused and conducted as efficiently as possible, so that you can go back to the more important work of building a first-class business.

What happens if my campaign doesn't reach my target investment amount?

VentureCrowd can accept investments for less than the campaign target amount, however investors would be given the opportunity to assess their position in view of any shortfall.

If my business raises the target amount, how do I deal with all the equity shareholders?

Whilst a 'crowd' of people will provide funding to your company through VentureCrowd, you will not need to deal with them as individual shareholders. All the money provided by the 'crowd' is pooled and invested through a VentureCrowd trust. The only direct investor in your company will be VentureCrowd.

Who are our partners?

Our current partners include a broad range of angel groups, incubators, accelerators, venture capital firms, university commercialisation programs, digital agencies and corporate partners.

Read more about VentureCrowd Partners.

Who is the team behind VentureCrowd?

VentureCrowd is the online arm of Artesian Venture Partners, one of Australia's most reputable venture firms. Artesian Venture Partners is the fund manager behind:

  • Sydney Angels Sidecar Fund
  • Slingshot Accelerator Fund
  • BlueChilli Venture Fund
  • Artesian Venture Capital Fund of Funds

This allows us to give investors peace of mind that they are investing alongside some of Australia's most trusted players.

Artesian Venture Partners' parent entity, Artesian Capital Management, is an alternative investment management business that spun out of the ANZ Banking Group's capital markets business in 2004. Artesian's founding partners purchased ANZ's stake in 2005 and since this time, the company has been fully owned by partners and staff.

Artesian Venture Partners focuses on making principal investments and managing funds for seed-stage and early-stage ventures from their offices in Sydney, Melbourne, and Shanghai. Artesian Capital Management also manages credit relative value investment strategies from its New York, London and Singapore offices.

Read more about Artesian Venture Partners and Artesian Capital Management.