Clarity for startups and backers

Frequently asked questions Your questions answered

Tips for startups and investors

1

Tell your story with clarity and purpose

Define your project’s purpose clearly and present it visually—investors engage with transparent narratives supported by data and genuine intent.
2

Evaluate before you commit funds

Conduct due diligence on potential investments, reviewing project documentation, founders’ backgrounds, and third-party feedback before making a decision.

3

Update backers regularly and openly

Maintain transparent updates with backers, sharing milestones, challenges, and progress reports to build trust and long-term support.
4

Prepare for compliance from day one

Review the platform’s compliance requirements and ensure all documentation is current—successful campaigns begin with proper preparation and legal readiness.

Glossary

Crowdfunding terms explained

A practical guide to essential crowdfunding and investment terms—explained for clarity and updated with recent industry context. Use these definitions to navigate platform communications, project documentation, and investor materials confidently.

Crowdfunding

Equity crowdfunding

The practice of raising small amounts of capital from a large number of individuals, usually via an online platform, to support business projects or startups.

Investment

Investor participation

A financial contribution made to a startup or project with the expectation of receiving returns, such as dividends or ownership shares, subject to risk and regulation.

Startup

Startup company

A newly established business, often in early growth stages, seeking funding, market fit, or community support through innovative approaches.

Platform

Crowdfunding platform

The digital infrastructure connecting founders with backers, providing tools for campaign management, compliance, and communication.

Compliance

Regulatory compliance

Processes and policies ensuring all activities meet legal and regulatory requirements for both Australian and international users.

Finance

Disbursement

The act of transferring pledged amounts from investors to project accounts when funding targets are achieved, following all regulatory and platform requirements.

Risk

Investment risk

Potential for financial loss or failure associated with investing in or launching a crowdfunding campaign, influenced by market and project-specific factors.

Reporting

Project reporting

Regular updates and disclosures provided by startups to backers and the platform, maintaining transparency and trust throughout the campaign lifecycle.

Community

Community engagement

The network of founders, investors, and supporters who interact, share insights, and contribute to the growth of startups on the platform.

Due diligence

Due diligence review

The process of investigating a startup’s credentials, business model, and compliance documents before approving a crowdfunding campaign for listing.