CROWD-SOURCED FUNDING

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Presentation transcript:

CROWD-SOURCED FUNDING PRESENTS OPPORTUNITIES TO CREATE “NEW INCOME STREAMS” Presented by: Peter Towers, Managing Director, ESS BIZTOOLS Marc Johnstone, Chief Operating Officer, Enable Funding

Wanted! Accountancy Firms Committed to Crowd-Sourced Funding Crowd-Sourced Funding Equity Raising is brand new! No accountancy business has an historical advantage! Now is your opportunity! Don’t miss this great service diversification! CSF Presents Opportunities to Create "New Income Streams"

Crowd-Sourced Funding Is Targeted At...... Small/medium enterprises Inventors CSF Presents Opportunities to Create "New Income Streams"

Traditional Clients Of..... Small to medium sized accountants Your “natural clients” Don’t encourage them to go elsewhere Offer them a great service! CSF Presents Opportunities to Create "New Income Streams"

Create a “New Income Stream” Is the company a potential Crowd-Sourced Funding (CSF) Company? Proprietary Company to be converted? CSF Presents Opportunities to Create "New Income Streams"

Why Not Analyse Your Clients? Phase 1 – Legal Tests to be met Phase 2 – Subjective comments & tests to determine companies that are interested CSF Presents Opportunities to Create "New Income Streams"

Phase 1 – Legal Tests Group turnover/sales under $25M per annum Group asset value under $25M Not listed on a Stock Exchange anywhere in the world CSF Presents Opportunities to Create "New Income Streams"

Subjective Comments Company can operate in any type of industry No age specification for the company CSF Presents Opportunities to Create "New Income Streams"

Phase 2 – Subjective Tests A. Business Review Early Stage High Growth and Disruptive (ESHGD) Companies? Business expansion? Acquisition of businesses? Vision for the business? Does the company require funding to implement these visions? CSF Presents Opportunities to Create "New Income Streams"

Phase 2 – Subjective Tests (cont’d...) B. Succession Planning Need for capital injection to facilitate the funding of a shareholder succession? C. Balance Sheet Review Does the company have: Loans – other than bank loan secured on 1st mortgage on the company’s own property Other bank/finance company loans CSF Presents Opportunities to Create "New Income Streams"

Phase 2 – Subjective Tests (cont’d...) Loans from family/friends High credit card debts Would the directors be interested in raising capital to pay these loans/credit card debts and save interest? CSF Presents Opportunities to Create "New Income Streams"

Capital Raising Raise up to $5M every 12 months Would these companies be interested? Present a seminar to brief these selected clients on how their business can benefit from Crowd-Sourced Funding CSF Presents Opportunities to Create "New Income Streams"

Checklist to Assist in Identification ESS BASIP “Checklist for Identifying Clients for CSF”, will assist you to identify the companies that satisfy the legal requirements and score positively on the subjective tests (BAS5108) CSF Presents Opportunities to Create "New Income Streams"

Create a “New Income Stream” Preparation of the CSF Offer Document This will probably require: Business Plan Share Price Determination Budget Cashflow Forecasts Company Valuation Information Memorandum Professional fees for this work estimated at $20K to $40K Virtual Chief Financial Officer Services CSF Presents Opportunities to Create "New Income Streams"

Create a “New Income Stream” (cont’d...) Advising your client on the CSF Intermediary Role Assisting in the appointment of a CSF Intermediary CSF Presents Opportunities to Create "New Income Streams"

Overview of CSEF Legislation A CSF offer must be made via the ‘platform’ of a CSF Intermediary A CSF Intermediary must hold an AFSL under which it is expressly authorised to provide a crowd funding service CSF Presents Opportunities to Create "New Income Streams"

Overview of CSEF Legislation (cont’d...) In order to make a CSF offer, an entity must publish a tailored CSF offer document on the platform of a single CSF Intermediary and all applications and application monies are to be handled by the Intermediary All offers must be closed within 3 months (if not stated to close earlier) CSF Presents Opportunities to Create "New Income Streams"

Overview of CSEF Legislation (cont’d...) The main features of the CSF Bill are: A retail investor may apply for a maximum of $10,000 per offer within a 12-month period and has an unconditional right to withdraw from a CSF offer within five business days of making an application; The CSF Bill contains provisions regarding defective CSF offer documents which subject the Intermediary, the issuer and other entities or persons responsible for the offer document to civil and criminal liability; CSF Presents Opportunities to Create "New Income Streams"

Overview of CSEF Legislation (cont’d...) A number of corporate governance and reporting concessions are available to eligible companies for a maximum of five years from registration as, or conversion to a public company that intends to utilise CSF at the time they are registered CSF Presents Opportunities to Create "New Income Streams"

Overview of CSEF Legislation (cont’d...) These concessions include an exemption from the annual general meeting requirement and the option to provide only online financial reports to shareholders Additionally, the company is not required to appoint an auditor for the five year period or until the company has raised more than $1 million from CSF offers or other offers requiring disclosure at any time CSF Presents Opportunities to Create "New Income Streams"

CSEF Intermediaries A ‘CSF Intermediary” is a financial service licensee whose licence expressly authorises the licensee to provide a crowd-funding service CSF Intermediaries will need an Australian Financial Service Licence (AFSL) to operate a CSF platform CSF Presents Opportunities to Create "New Income Streams"

CSEF Intermediaries (cont’d...) The new laws set out other obligations and requirements for CSF Intermediaries, such as: Gatekeeper obligations Maintaining open communication channels about the offer while the offer is open or suspended; and Disclosure requirements as to the financial interest (including fees charged) the CSF Intermediary (or any associate of the CSF Intermediary) has or expects to acquire in the issuer CSF Presents Opportunities to Create "New Income Streams"

Potential Investors Investors with 4 specific segments: Sophisticated Investor: earning more than $250K per annum or have more than $2.5M net worth (excluding home, including superannuation) Pro Active Enabler – 45-65 yo – net assets = $1M Progressive Enabler – 35-55 yo – net assets < $1M Budding Enabler – 25-40 yo CSF Presents Opportunities to Create "New Income Streams"

Opportunities for Accountants Opportunity to be involved in: A high value service for clients A new revenue line that is high margin Strategic work Value add for clients increases loyalty CSF Presents Opportunities to Create "New Income Streams"

Enable Funding Australia’s first crowdfunding platform – founded 2007 $147M raised for 176 companies World Bank recognition CSF Presents Opportunities to Create "New Income Streams"

Enable Funding A de-risked approach to the new asset class: IMENCA AIG Issuer optimisation services The need for this asset class in Australia The lessons from other markets CSF Presents Opportunities to Create "New Income Streams"

In Summary Crowd-Sourced Funding is a great opportunity for some of your clients to go to the next level Crowd-Sourced Funding creates “new revenue stream opportunities” for proactive accountants CSF Presents Opportunities to Create "New Income Streams"

In Summary (cont’d...) BASB030 – Procedure Control Form BAS5005 – What is Crowd-Sourced Funding? BAS5110 – Company Eligibility Questionnaire – Accountants Use BAS5115 – Company Preparation Guide BAS5120 – CSF Offer Document Overview CSF Presents Opportunities to Create "New Income Streams"

Enable Funding - Contact/Questions Marc Johnstone +61 426 890 735 Marc.Johnstone@enablefunding.com www.enablefunding.com CSF Presents Opportunities to Create "New Income Streams"

ESS BIZTOOLS - Contact/Questions Peter Towers (07) 4724 1118 / 0418 190 181 peter@essbiztools.com.au www.essbiztools.com.au www.essbasip.com.au CSF Presents Opportunities to Create "New Income Streams"