What is a crowd-sourced funding offer document?

All companies who raise under the crowd-sourced funding regime are required to create and publish an offer document. A company’s offer document is visible on their live offer page under the blue button called “Offer documents”.

The offer document is used to provide investors with enough clear and concise information so they can conduct comprehensive due diligence and make an informed investment decision.

The below information must be included in the offer document:

  • The crowd-sourced funding risk warning
  • The open and close date of the campaign
  • An introduction to the business (including business model, strategy and market position)
  • Financial statements for the previous financial year prepared in accordance with Australian accounting standards
  • Information about directors, senior management and key team members
  • An organisational chart / corporate structure of the business
  • A capital structure which includes a list of all securities issues (before and after the CSF offer)
  • The minimum and maximum raise amount targets
  • The company valuation
  • A use of funds plan to describe where the capital raised will be deployed
  • Terms of the offer, which include the minimum and maximum raise targets as well as the minimum amount someone can invest
  • The key risks faced by the business and their mitigation strategy
  • A description of a shareholder’s rights and company’s governance obligations
  • Information on cooling off-rights

You may also find information on:

  • Business growth and traction (partnerships, sales, achievements)
  • Investor rewards (offered through the crowd-sourced funding offer)

Before investing, make sure you review the offer document and risk warning.

Do you have more questions? Feel free to send them in to us