Crowdfunding Advisory

Taurus Group is a Chartered Accounting team based in both Christchurch and Auckland.
We specialise in providing solutions for business to grow and achieve their business dreams.
We are experienced in the crowdfunding process and have successfully carried clients through this process from start to finish in achieving funds.
Taurus Group have successfully assisted clients in carrying out their equity raising goals by utilising crowdfunding.

What is Equity Crowdfunding?

Equity Crowdfunding takes this concept to the next level, allowing companies to raise “equity” or “capital” from the public aka ‘their crowd’.The equity funds raised are to be used to grow their business. In return, people who give those companies money in an equity crowdfunding campaign will receive shares in that company i.e. they become a part owner of that company.

What is the purpose of Crowdfunding?

For companies, Equity crowdfunding allows companies to raise capital from their respective crowd, with less time and expense required than going through traditional avenues such as a public raise. It also gives companies the ability to raise money from a wider audience, including giving their own customers a chance to become a shareholder.
That’s why companies using equity crowdfunding are generally smaller, high-growth companies, that are not ready for the time, expense and regulatory requirements of listing on a public share market. New Zealand’s current regulations allow companies to raise between $100 – $4 million from crowdfunding per year.

What is the Crowdfunding Process?

A company wanting to raise capital launches an equity crowdfunding campaign on a licensed platform.
The campaign is accompanied by an Information Memorandum(IM) document. The IM contains key details about the campaign and company’s history and personal. The IM also entails financial details as to; what the money will be used for, risks, financial statements and forecasts, how many shares are on offer, and the minimum and maximum investment amount.
Small investors and ‘the crowd’ sign up to the equity crowdfunding platform and agree to invest their desired amount. Anyone in the public can invest, and the minimum investment amount varies for each campaign (this typically starts between $200-$1,000).
Each campaign has a minimum target, which is the amount of money that must be raised for the campaign to be deemed successful. Campaigns also have a maximum amount that can be raised. A campaign closes when it reaches its closing date or the maximum amount.
If the campaign meets its minimum target, investors’ money is passed to the company, and investors are issued shares in that company. If the campaign fails to meet its minimum target at the closing date, no money changes hands and no shares are issued.