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Do You Want Funding For Your Business Or Invention?

By October 18, 2018IP Insights

When we sit down with inventors and new clients, one of the recurring topics of discussion is funding. Have you acquired funding for your project? If not, how do you plan to obtain it?

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Obtaining Funds For Your Latest Project, Startup or Invention

When we sit down with inventors and new clients, one of the recurring topics of discussion is funding. Have you acquired funding for your project? If not, how do you plan to obtain it?

There are several ways to obtain funding for the commercialisation of a product; crowd funding, investors and licensees, and government and institutional grants.

In Part 1 of our Funding Your Project series, we will cover the latest trend of raising equity capital, Crowd Funding.

What is Crowd-sourced Equity Funding?

Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people.

Due to changes in the Corporations Act 2001, it is now possible for small to medium businesses to raise significant capital through equity-based crowd funding. Crowd-sourced funding allows start-ups and other small to medium sized companies to access up to $5M in capital in a 12-month period. The capital is raised by making an offer through an online platform operated by a service provider.

Offers must be comprehensive, but do not require the same level of detail as a prospectus. There are still regulatory requirements that must be met, but these have been relaxed compared to publicly listed companies.

The benefits of Crowd Funding

  • More efficient than traditional fundraising.
  • A place to build traction, social, proof, and validation.
  • Direct feedback, from consumers to refine your idea before release.
  • Gains you early adopters and loyal advocates.
  • Doubles as marketing and media exposure.

Before you rush to your favourite crowd funding platform, note that the service provider must hold an Australian financial services (AFS) licence with an authorisation to provide a crowd-funding service.

It should be noted that there are other types of crowd funding available such as non-investment crowd-sourced funding which involves a down payment for goods or services or a donation.

Protect your IP before going public

It is important to ensure that prior to making any public offerings or any public disclosure, that your intellectual property (IP) is protected. 

For products, this includes at least filing a provisional patent application and/or an application for a design registration.  Further IP costs can be covered by the capital raised through crowd sourced funding. 

arrow bold orange Know what you need to protect before going public

small business ip protection

Intellectual Property Protection for Small & Medium Size Businesses

Being a small or medium size business (SME) does not mean you need to be left behind. SMEs often believe they don’t need or can not afford to protect their most important business asset – their Intellectual Property (IP). This couldn’t be further from the truth.

Know what you need to protect…

Read more

Need assistance with crowd funding for your project?

If you are interested in raising capital through crowd sourced funding, we can put you in contact with the legal expertise and connections to help you take advantage of crowd-sourced equity funding.

Please call us on icon phone 07 3399 4625 or icon mail Request a free consultation and we will help you get in touch with the right people.

We also have a short attorney FAQ guide to assist you in preparing for the initial meeting and make it more valuable for you.  
Your first consultation is free of charge.

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