This article was originally created for Hayes Knight (now Nexia Auckland).
Home > Updates > Crowd funding gets the go ahead
Coming into force on 1 April 2014 the changes will be an exciting development for both start up business and investors. The changes will make it much easier for small fast growing businesses to raise money through crowd funding and peer to peer lending.
Crowd funding is the collective effort of individuals who pool their resources, providing a platform where investors receive shares in the companies they invest in. This will provide a new avenue for early stage and growth companies to source capital needed for growth.
Under the new regulations, offers engaging in equity crowd funding and peer to peer lending will no longer need to prepare a prospectus or an investment statement before fund raising from the public. There are also no investor caps on the amount an investor can invest in a company for crowd funding provided the company can only raise up to $2million a year.
We see these changes as positive for start-up businesses and investors, creating new opportunities to drive business growth in New Zealand.
If you would like to find out more about the upcoming changes or crowd funding opportunities please contact your Hayes Knight Advisor.