Innovation focus results in a win for startups

“Right now in Australia, start-ups and small businesses can't actively access retail investors due to significant upfront and ongoing compliance costs and red tape”

This was the statement made by Small Business Minister Kelly O’Dwyer in announcing proposed changes to rules around equity crowd funding. At present, equity crowd funding in Australia is limited to “wholesale or sophisticated investors” who earn at least AUD250,000 a year or have AUD2.5 million in assets.  Proposed changes would allow public companies with AUD5 million or less in annual turnover, or up to AUD5 million in assets, to raise AUD5 million a year from retail, or “mum and dad” investors.  These changes are part and parcel of the Government’s focus on innovation.  Fast tracking the implementation of these proposed laws should help spur the small business and startup sector while providing retail investors with an additonal avenue for investment.