Investment based crowdfunding is the process of raising finance for projects from a collective number of people - the 'crowd' - often utilising an online-based platform through which campaign owners offer options to potential invested, who are both experienced and inexperienced investors.
These investment crowdfunding platforms involve investment based offering - most of which have the potential for a financial return on investment.
Investment based crowdfunding must take into account a range of different operational structures, so it is not a straightforward map of crowdfunding activities to be regulated under Australian legislation.
Generally speaking, a crowdsourced funding regime reduces the regulatory requirements for public fundraising, while maintaining appropriate investor protection measures. A provider of CSF services must hold an Australian Financial Services License (AFSL).
Real estate crowdfunding in Australia is still in its infancy, but there are several platforms you can use to participate such as CrowdfundUP,VentureCrowd, and DomaCom, where all individual Investors can invest from $1,000.
To get started, all you need to do is sign up, put together your investment strategy and begin investing in a range of projects that suit you.