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When raising capital via crowd-sourced funding (CSF), or equity crowdfunding with OnMarket, your company will go through 4 key phases: Preparation, Expression of Interest (EOI), Live Offer, and Completion. Here’s the timeline you can expect for each phase:
Phase 1: Preparation
On your marks…
Preparation is the key to a successful raise, so in the first few weeks, you will be prepare the assets you need for your CSF offer and strategise how to best market your campaign.
During this preparation period, you will need to complete the following:
Compliance groundwork: To make an ECF offer, ASIC requires OnMarket to complete certain checks on you, your directors, and your company (this is what ASIC calls our 'gatekeeper role').
EOI campaign preparation: To go into EOI you'll need to prepare an EOI company page, a short pitch video, and your EOI marketing plan.
Offer readiness check: before going into EOI, we check that you have all the pieces required to make an offer under the regulations – including your offer document drafted.
Phase 2: Expression of Interest (EOI)
Before your CSF offer opens, you will run an EOI campaign. The purpose of this is two-fold. It builds interest from the crowd – your network, your intermediaries network, and the general public. Secondly, it enables you to gather feedback from potential investors. This provides an indication of what you may be able to raise and what areas of your business you may want to emphasise in your marketing.
The primary objective of the EOI campaign is to promote your company and its upcoming offer. Strong EOI interest signal the likelihood of your offer being a success. If your EOI campaign doesn't resonate with the market, a 'time out' is called to re-strategise the campaign approach.
For your EOI, you will need:
An EOI company page set up on the OnMarket platform
A brief pitch video
An EOI marketing plan, pre-prepared materials (digital ads, emails, social posts etc) and a budget allocation to maximise impact
Phase 3: Offer
You are racing to raise to your full potential. In this phase you invite people to invest in your company via the OnMarket platform.
There are two pre-requisites to you making a live CSF offer with OnMarket. The first is that you pass the OnMarket gatekeeper checks (background checks on directors, senior managers, and the company itself, plus that you have the necessary documentation in place). The second is that the market feedback and data from your EOI campaign align with your raise expectations.
For this phase you will need the CSF offer material you prepared in Phase 1:
Offer company page set up on the OnMarket platform (your EOI page with any updates you want to add)
A compliant offer document and your constitution (plus a shareholder agreement if you have one).
An offer video
Your offer marketing plan, pre-prepared materials (digital ads, emails, social posts etc) and a budget allocation to maximise impact
Phase 4: Completion
Cross the finish line with a successful campaign and collect your hard-earned reward.
If you raise the at least the minimum target amount, you have succeeded. It is time for you to issue shares to your new shareholders and for us to transfer the net investment funds into your company’s bank account. Time to transform your vision into a reality!