Crowd-Sourced Funding (CSF) is a fantastic new way for companies to pursue alternative funding for their business. It allows for businesses to advertise and raise capital for their enterprise through a licensed intermediary (like Birchal) and build a base of brand ambassadors to help them achieve their next phase of growth. 

Since our first offer in late 2018, Birchal has run 150+ successful campaigns & raised more than $130 million for Australian startups and SMES. With now 180k members on our website, we've learnt a thing or two about what works!

What sort of companies thrive in these campaigns?

CSF is well suited to strong brands that are close with their customers and are already regular communicators with their audience. A CSF raise doesn't simply generate funds for businesses, but continues to build existing brands and establish communities of long-term advocates. This means that companies who tend to excel in equity crowdfunding have:

  • A unique value proposition that resonates with the market (this can be demonstrated through customers, meaningful revenue, PR or pre-launch waitlists)

  • A savvy marketing background, or have the capacity to develop their marketing foundations prior to a campaign (what this looks like will depend on the target audience) and;

  • A forward-thinking attitude to business with evidence of past-performance to demonstrate this to potential investors.

Going through this process, businesses will need to create a company constitution, subscription agreement and offer document in addition to managing a large on-going shareholder base post-campaign. Due to this, we recommend the sweet spot below for companies looking to undertake a Birchal raise is:

Is there such thing as an 'equity crowdfunding' investor?

Every campaign and company that comes through Birchal is unique, and your vision will resonate with different audiences. Some campaigns we work with have thousands of investors at lower values whilst others may have a few hundred at a higher parcel point. The type of interest a company receives outside their existing network really depends on the industry, company stage, and faith in the founder.

Does the industry change year-by-year?

It sure does! Check out our case studies and most up-to-date industry reports on our publications page:

What if Birchal has run a campaign for a company similar to mine in the past?

We take into account experience, data, market conditions and a range of other factors when considering a campaign on the platform. We're here to help companies run successful campaigns and rely on lived experience to guide founders on whether this method is going to produce the best outcome.

Maybe this isn't for me or Birchal said my company is 'too early' for a campaign. What do I do now?

Often when companies are 'too early', they'll struggle to raise their desired amount via equity crowdfunding and spend a lot of money trying. We're always happy to speak to companies in the future to reassess their stage and try our best to provide honest advice and guidance. Some companies approach us months, if not years, in advance in preparation for a campaign!

But if you need money now, luckily equity crowdfunding is one of many ways early stage companies can raise capital in Australia. Below we have some high-level guidance, or you can check out The complete guide to startup capital: 12 ways to fund a new venture in Australia by Smart Company.

Final word

We simplify fundraising for forward-thinking businesses and are passionate about removing barriers for founder teams to scale. Unfortunately, that sometimes means we have to pass on otherwise fantastic opportunities - especially if we feel we can't support them in the way that they need.

If you'd like to reach out to the Birchal team or keep up-to-date with our upcoming events, be sure to sign up to our newsletter and stay in the loop. We wish you the best on your journey and welcome you to our community!

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