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According to the statistics shared by UNDP, crowdfunding has “become one of the largest sources of financing for SMEs, second only to venture capital. The industry is expected to reach an annual volume of US$100 billion by 2025, becoming the leading financial channel for SMEs.”

 
Green Crowdfunding
 

Crowdfunding can be defined as many people pooling in small amounts of money to help initiatives led by others get off the ground. The funds can be pooled in for the establishment of a new business, production of a movie, the conservation of a heritage building or even kickstarting a green energy project.

Undoubtedly, crowdfunding presents the much-needed financing as well as the motivation to innovate and create to SMEs at a time when most banks are reluctant to lend to small businesses. At the same time, crowdfunding also empowers consumers by giving them the power to fund and support ideas/businesses they believe in and would like to succeed.

For companies working in the renewable energy sector, the growing popularity of crowdfunding is definitely good news. Through crowdfunding, these companies can now attract the finance they need to develop new technologies and also raise awareness about sustainability simultaneously.

According to Giancarlo Giudici, associate professor of corporate finance at Politecnico di Milano, “Through crowdfunding, sponsors of green energy projects are able to involve local communities in the ownership and financing, raising awareness about sustainability. In crowdfunding, pledgers are typically motivated by both financial objectives (i.e. making money) but also by intrinsic objectives (i.e. helping reduce carbon emissions and pollution).” [Source]

Talking about green crowdfunding in Australia, Fintechbusiness.com reports that Australian solar energy users can invest in their own energy company with the launch of the world’s first crowdfunded energy retailer for solar owners – DC Power Co.

However, green crowdfunding is still in infancy in Australia, writes Prof Martina Linnenluecke, Professor of Environmental Science at Macquarie University. In her article published on Bluenotes, she has given some insightful suggestions to promote green crowdfunding in Australia. You can read the full article here.


The future of crowdfunding in Australia

The latest changes in the crowdfunding legislation enabled hundreds of startups to raise funds from the general public to help their ideas get off the ground.

The law currently allows Australian businesses that meet certain criteria to crowdsource up to $5 million a year from retail investors in return for equity in their company. The legislation caps the investment at $10,000 per investor. There are several platforms, such as Equitise, where businesses can seek funds from the public at large. Clean energy projects can take advantage of the equity crowdfunding law by moving away from the donation-based model to offering investors a stake in the business or certain returns on their investment to attract more funds.

In fact, following the legislative changes in 2017, many startups and small businesses in Australia have launched crowdfunding campaigns to raise funds for expansion and tech innovation. HashChing, one of Australia’s fastest growing fintechs, is the latest to explore equity crowdfunding to raise fresh capital for increasing brand awareness, introducing new technology and expanding the team. HashChing is looking to raise up to $5 million by the end of June via crowd-funding. The company has partnered with the equity crowd-funding platform Equitise to issue its first round of shares to interested investors who can make an investment in the company with a minimum investment of $250, worth 200 shares. The offer is open to public on the Equitise platform until 5pm (AEST) on 15 June 2018.

Read more about the offer here to partner with one of Australia’s fastest growing fintech companies that keeps its customers’ interests first.


About HashChing

HashChing is a borrower-friendly online mortgage marketplace that enables home borrowers to compare broker pre-negotiated home loan deals from over 80 lenders across Australia. Using sophisticated algorithms and artificial intelligence, HashChing connects borrowers to local mortgage brokers, ushering the concept of on-demand service that was previously unheard of in the mortgage industry.

One of the fastest growing fintechs in the country, HashChing is backed by VC firms such as H2 Ventures, Picus Capital, and Sapien Ventures. Currently, the company is raising more capital via equity crowdfunding for investing in technology and expanding their footprint.

Disclaimer: Like any investment, Crowd-Sourced Funding (CSF) is risky. Investors may lose their money and the business may not achieve its objectives. You should consider the CSF offer document and the general CSF risk warning contained in the offer document in deciding whether to apply under the offer.

 

By Vidhu Bajaj,
HashChing Content Writer

 

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