It depends! When you purchase shares in a company under a CSF offer, you are purchasing shares in a private company or an unlisted public company. These types of companies are not "listed public companies" and the shares are not traded on a securities exchange like the ASX.

Many companies that make a CSF offer are new, early stage or rapidly growing ventures. This means, many of these companies are in the early stages of the business and have many years of hard work ahead of them in order to grow the business and execute on its strategy. This is what your investment money will be spent on.

When you make an investment under a CSF offer, you should consider this a "medium to long-term" investment. The shares are generally considered to be 'illiquid' - this means they are not easily transferable so you may not be able to sell them when you want to. This is different from public companies listed on a securities exchange like the ASX where there is regular opportunities to buy and sell shares on the public market.

There may be various events or ways for you to receive a return on your investment. For example:

  • the company undertakes an IPO and lists on a securities exchange

  • the company undertakes an exit event, like a sale of the company

  • you transfer your shares to a third party and a price for the shares is agreed

  • the company declares dividends (see — Will I receive dividends from the company I invested in?)

  • the company undertakes a share-buy back

  • the company participates in a trade facility, like Birchal Trade

At this early stage, it is not likely to be reasonable for a company to predict when one of these options might eventuate or what that the return on investment might be (if any).

We recommend you read the company's constitution and CSF offer document to satisfy yourself of the investment opportunity and associated risks.

If you are unsure, we recommend you seek independent financial, legal or other professional advice.

Not what you're looking for?

See —

How do I contact the company?

Will I receive dividends from the company I invested in?

How can I sell or transfer my shares?

What is the pre-money valuation?

Have any companies which have raised funds on Birchal IPO'ed or had an exit?

Are CSF shares traded on the ASX?

What are the risks of crowd-sourced funding?


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