By Matt Vitale Co-founder & MD - Birchal
Amid the growing popularity of crowdfunding initiatives, Birchal, Australia's largest equity crowdfunding platform, has experienced an unprecedented surge of investment activity. In the fiscal year 2022, it successfully closed 68 deals comprising $62.4 million in funding volume - nearly three times as much investment as the 14 other market players combined.
Birchal's business model, crowd-sourced funding, lets average people invest in early-stage unlisted companies. As part of the deal, the investor receives shares in the business. If the company does well, everyone benefits from its success. Potential investors can also increase their shares by participating in the next round of investment.
Besides facilitating small investors, equity crowdfunding platforms enable SMEs and startups to raise capital quickly without the red tape and bureaucratic paperwork associated with capital funding. Birchal can help any business meet its financial needs within a few days. For instance, Zero Co, an eco-friendly cleaning & body care products company, used the platform to raise $5 million in just six hours - the maximum amount allowed under Australian law in one year.
In the past, Birchal has used its own crowdfunding platform to fund its expansion needs. In April 2022, Birchal raised $3 million during a lunch break. Not surprisingly, it took only one hour and three minutes to raise the capital. The event helped to highlight the effectiveness of the model and its numerous benefits to stakeholders.
However, breaking records is not something that the founders of Birchal have in mind. Instead, they want to ensure that Birchal becomes a household name for SMEs, startups, and retail investors. It means making SMEs and startups part of the mainstream suite of investment options open to retail investors.
In its quest to become mainstream, the platform is eager to attract young investors who can become major stakeholders in Australia's upcoming startups. This is precisely what the tagline says on the official website "Everyone should have the opportunity to invest in the brands they love." In other words, profitable investment is not the domain of the rich and famous anymore. As a retail investor, anyone over the age of 18, can invest in upcoming consumer brands with minimal capital.
Here is a snapshot of the top five CSF offers by funding volume in 2022:
ZeroCo ($5 Million) funded by 3,082 investments.
Montu ($3.5 Million) funded by 1,490 investments.
Birchal ($3 Million) funded by 595 investments.
Black Hops ($2.2 Million) funded by 996 investments.
Kester Black ($2.2 Million) funded by 1,687 investments.
In 2022, Birchal closed $68 million in successful transactions totaling $62.4 million in funding volume. These figures are more than three times the volume of the next two market players, Equitise and OnMarket. Last year, the Birchal equity crowdfunding platform raised 73% of all funds and facilitated 84% of all investments across the entire sector.
Investing in Birchal’s projects can offer endless possibilities for investors. For starters, it's easy to open an account and start investing without preconditions. In addition, there are no strict funding rules to follow. Anyone over 18 years old can open an account and what's more, international investors are welcome to join the investment frenzy.
Using the CSF regime, Birchal guides prospective companies through a public offer for securities that lasts between 9-12 weeks. The process has proven immensely successful for companies that need funding as well as for investors who're looking to invest in the project. The transparent fee structure, user-friendly interface, and streamlined investment process also play a role in simplifying the investment process for everyone.
To find out more about the project, and how you can become a part of the leading Australian consumer brand, visitBirchal.com.