Paul Niederer, CEO and Director of the Australian Small Scale Offerings Board (ASSOB), recently shared his vision on the future of non-accredited crowdfunding for those of us waiting in the limbo of Title III rules. Niederer has been a leading voice in the global crowdfunding movement having the fortune of leading an early platform that leveraged technology to finance small businesses. In a post on his personal web site he contrasts what is occurring elsewhere around the world and what may occur in the United States once the folks at the SEC release finals rules for retail crowdfunding.
Non-accredited investors have been able to invest in early stage companies for about 8 years in Australia and for around 3 years in the UK. During this time there has not been a single instance of fraud but more than a few significant successes.
Citing several examples from both countries he notes that each required:
- A Convincing, Compelling, Credible Story coupled with a perceived viable business model
- A Balanced, Passionate, Capable and Likeable Team
- Lots of Suitable People to share the story with and engage
Equity crowdfunding is no easy task. Niederer states;
To successfully raise the capital, capital raising teams need to roll up their sleeves. The need to point their 1st and 2nd level contacts towards the profile page on the capital raising platform and once they are there they need to reach out, nurture and convert investors at each level of contact. Online marketing isnt enough. Frequent updates and personal interactions are essential.
Niederer closes by saying, “once title III is enacted these examples will be multiplied many fold.
His entire post is definitely worth a read.
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