Crowdfunding has helped many entrepreneurs raise necessary funds to build their businesses as well as provided SMEs with the capital to expand and innovate. Especially in the current times when global economies are generally growing at a sluggish pace, crowdfunding offers entrepreneurs and SMEs a chance to stay afloat by enabling them to showcase their idea to the world to raise funds from interested backers.

What crowdfunding means for the economy

According to an infographic released by the Founder Institute in 2014, for every $1 invested in start-ups, $6.36 is generated in revenue. The infographic also points out that by 2020, crowdfunding is estimated to generate about $3.2 trillion in economic value per year and create 2 million new jobs globally.

Benefits of crowdfunding for the economy

Ben Bucknell, founder of one of Australia’s first crowdfunding platforms OnMarket, defines equity crowdfunding in an interesting manner. He says: “Equity crowdfunding is an innovative way to fund someone else’s dream and reap the benefits of being an early stage investor.” [Source]

In Australia, the current legislation 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.

Crowdfunding is undoubtedly useful for small businesses and startups, as it enables them to access funds they might not have been able to raise through traditional methods of financing. However, it is often overlooked that crowdfunding is also a viable option for established businesses to acquire funds for expanding their product range or develop new technology. In general, one could say that crowdfunding has been instrumental in boosting innovation across sectors by keeping entrepreneurs and SMEs motivated to create and innovate – by allowing them to raise funds from a large number of people who back their product.

Talking about the larger picture, companies that use crowdfunding to raise money not only benefit themselves but also benefit the economy in many ways. Crowdfunding helps build startups that automatically creates more job opportunities, which is important for any economy. Besides, companies that raise funds through crowdfunding are able to generate a lot of buzz around their upcoming product or service, giving them greater visibility in the market that often translates into more sales and higher revenues.

Thanks to crowdfunding projects, regular people also get to play venture capitalists – getting a stake in businesses they believe in for a small sum of money.

(Read how crowdfunding can benefit your business, here)

Crowdfunding your home loan journey

HashChing, an online borrower-friendly mortgage marketplace, has always been at the helm of innovation, never shying away from adopting new technologies and trends, if it means more value for customers. It is, therefore, not surprising that HashChing is one of the first few fintechs in Australia to jump on the crowdfunding bandwagon to raise fresh capital for increasing brand awareness, introducing new technology and expanding the team.

Since its inception in 2015, HashChing has helped over 40,000 borrowers on their home loan journey, settling loans worth [$880 million] and counting. Currently, 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 in a bid to maintain its position as an independent entity in the mortgage market, free from the influence of any bank.

Interested individuals 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



HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.

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