Changes to securities laws (in Australia and overseas) now make it easier for private companies to:
- - raise investment from retail and wholesale investors
- - have a broad base of shareholders
- - advertise their securities offers online
Birchal is Australia’s leading CSF platform with greater than 70% share of CSF funding volume since 2020. Since 2018, Birchal has hosted 300 successful CSF offers, raising approximately $218m and facilitated over 130 thousand investments.
Product / Service Details
Everyone should have the opportunity to invest in the companies they love
We’ve streamlined a simple, fast and effective process for making a public offer of securities using the CSF regime.
We guide companies through a public offer of securities, under Australia's CSF regime, which includes a pre-offer expression of interest (EOI) campaign (2-3 weeks) and an offer period (2 weeks).
Our proprietary tools and resources give companies access to key information throughout the process, making it easy to communicate with a large audience, prioritise and tailor communications to groups of investors.
Business Model
Summary
Birchal is a crowd-sourced funding (CSF) intermediary, licensed in Australia by ASIC, and authorised to host offers under the crowd-sourced funding regime in Part 6D.3A of the Corporations Act.
Description
Birchal’s core business activity is to host regulated CSF offers on the Birchal platform.
Birchal's fees are simple and transparent.
We charge the following fees to a company to host a CSF Offer:
- Expression of Interest campaign (EOI) fee - $1,200
- CSF Offer Administration fee - $3,000
- CSF Offer Success Fee - 7.5% of approved investments.
- The Birchal platform is free to use for investors.
Mission & Objectives
Mission
We simplify fundraising so that forward-thinking businesses can build communities of engaged supporters and get back to shaping the future we all want.
Business Objectives
Our medium term objective is to scale the CSF industry by expanding core services, diversifying revenue streams and advancing regulatory innovation. This includes:
- - Expanding marketing services
- - Leveraging advisor networks to boost campaign awareness and participation
- - Development of specialised angel networks, such as the Birchal First Syndicate
- - Collaboration with universities to unlock alumni investment potential and establish funds to support innovative startups
- - Advocacy for regulatory innovations to further unlock the appeal and power of the CSF regime
Industry
Summary
Since commencement in 2018, Australia’s CSF industry has facilitated the raising of over $315m across over 426 successful CSF offers, with 34 offers raising more than $2m (as at 30 June 2024). Approximately 2 out of 3 offers have been hosted by Birchal.
Description
Australia’s CSF industry is the second-largest globally (per capita) behind only the UK, which was seven times greater than Australia’s in 2021, inferring a potential market size of approximately $700m.
Australia’s CSF industry has continued to be a resilient funding source for Australian SMEs. In FY24, approximately $64.5m was raised across 99 successful CSF offers, a 16% increase on FY23.
In FY24, 46% of all successful CSF offers were made by companies that had greater than $1m in reported revenue at the time of their offer (just 22% in FY20).
