The creation of the watch was funded by raising $10 million through crowdfunding website Kickstarter and the watch, which wirelessly connects to smartphones, has been shipped to the “backers” – the ordinary people who paid the company money.
The Pebble Watch is significant as it was one of the first on Kickstarter to raise such a huge amount of money, and proved that bypassing financiers could be a viable route for small business.
However, the success of the Pebble Watch only highlights the problems with the rules and regulations surrounding crowdfunding in Australia.
Last year the Australian Securities and Investments Commission released a warning for users who participate in these types of events.
The warning related to financial investors who receive equity in a venture rather than just a product like a watch.
The regulatory burden imposed on equity crowdfunding means Australian law currently effectively prevents this type of entrepreneurial activity.
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