Five steps for raising equity from The OnMarket Crowd

If you have a business that is changing the world for the better, and are ready to raise equity from the crowd, then we want to speak to you.

Types of businesses that can use OnMarket

Businesses from seed or start up through to IPO are all welcome to apply to raise capital through OnMarket.  There are however, certain regulatory requirements that will determine if your company is eligible to equity crowdfund. Your company must:

  • be a company limited by shares
  • have your principal place of business in Australia
  • have a majority of its directors reside in Australia
  • have assets and revenues of no more than $25 million
  • not be a listed company
  • not be in the business of investing in other companies or entities

Our five step guide below should give you a clear outline of how you can raise funds via OnMarket Crowd.

Step 1   Register your interest

Before registering your interest, you need to make sure your company is eligible for Equity Crowdfunding. Are you an unlisted company? Do you have less than $25 million in consolidated assets and annual revenue? Is your principal place of business and majority of directors in Australia? More information is available here.

Once you Register Your Interest, we will undertake a preliminary assessment to determine whether your raise is suitable for the OnMarket Crowd. One of our origination team will be in touch to discuss your raising in further detail.

Step 2   Due diligence

The next stage will focus on ensuring your business is ready to raise funds. This will include some preliminary discussions between you and us, going through the necessary due diligence process. Think of it as a “business boot camp”.   

We will focus on our Five Pillars of Due Diligence, including Business, People, Financials, Legal and Risks. For more information see our Due Diligence Commitment.

Step 3   Building your campaign

This is where you get to let your creative juices flow. Tell people what makes your business great, and why they should come along for the ride. Creating a great short video, graphics and imagery will all be part of this process. Don’t worry though, the OnMarket team will be there to help you along the way.

More information on preparing your campaign is available here.

Step 4   Going out to the crowd

Now it starts to get interesting, as the strategy around building momentum in your offer can make or break your campaign. Once you go live, you will have 30-45 days to raise the funds, so you will need to make every second count. We will work with you to map out your marketing and promotion plans and give you tips for building early momentum. It is also important for you tap into your extended network of family, friends, customers and suppliers to build the initial momentum.

While the campaign is live, you may need to answer investor questions and also participate in investor webinars.

Step 5    Reaching your target

When you reach your funding target and the campaign is completed, it will be time to wrap up the process. This will include closing off the funding, finalising the legal documentation and settling the funds. We will also require you to sign up to a registry management platform to help manage your new and improved shareholder base. Last, but not least, we will transfer the funds to you, less any costs, and deliver to you your list of new investors.

You are now a member of the OnMarket Funded Club and it’s time for you to get back to business, but don’t forget to keep the information flowing to your new shareholders!