Raise Equity Capital

Equity Capital is contributed by investors in exchange for a share of ownership of your business. It's not repayable, demands no provision of security (other than the issued shares), and bears no interest.

Banks not lending to SMEs!

Small to medium sized enterprises (SMEs) are an essential part of the economy, it’s where innovation, growth and job creation come from. However, SMEs are facing huge challenges in terms of funding. Bank lending has tightened, and businesses have seen their traditional source of funding dry up.

Opportunities are everywhere!

Entrepreneurs note: If you think there are only limited opportunities out there, you only need remind yourself of this indisputable fact; there are people who have not yet been born who will one day make huge fortunes from their ideas. These people will start new businesses that no one else ever thought of.


Equity Funding for start-ups, early stage & established businesses

SMEs can undertake an Initial ‘Private’ Offer to raise debt free, interest free, unsecured funds to grow, even if the business is small or very early stage.

An Initial Private Offer or IPO is an affordable way for a startup or early-stage company to raise equity capital. An IPO provides a simple and legal way to make private offers to issue shares to investors.

Unlike an initial public offer, an initial private offer to issue shares does not require the preparation of a costly product disclosure document (prospectus). Another benefit is the company’s ability to remain a private company.

Equity capital is contributed in return for a share of ownership of your business. It’s not repayable, demands no provision of security (other than the issued shares) and bears no interest.

Critical to your Venture is the quantity of shares the Founders will each hold BEFORE you Issue any new Shares in your Company to Investors.

Cover costs by issuing a
Convertible Bond

The cost of a small-scale capital raising exercise can be around $10k to $15k. there can be advisor fees, incorporation fees, legal fees, document preparation fees, etc. If you’re short on funds, offering Convertible SME Bonds to your early followers may be a way to cover off those initial expenses. Click here to issue Convertible SME Bonds.

Often there are people around a good idea who would invest if the opportunity was presented to them. These early followers would have the discretion to choose to convert to equity as the business grows, perhaps at a discounted price to your Company’s proposed Initial Private Offer share price.

Your Initial Private Offer (IPO)

The Company structure is immortal (unlike its directors). It has a charter to implement its business plan for the benefit of its shareholders.

An appropriate share capital structure provides the best protection, to the Company’s founding shareholders, from Vulture Venture Capitalists stealing your Company when seeking investment. Ideally the founders need to retain at least 51% control.

Prior to seeking outside investors, it is critical to establish the number of shares each founder will hold before you commence your Initial Private Offer.

As investors come in, the quantity of shares the founders hold will always remain the same, it’s only the percentage they hold that will reduce.

The trading exchange for SMEs can support primary issues from your SME as well as a secondary sale platform as an exit pathway for its shareholders.

To establish an appropriate number of shares to be held by the founders of your SME you will need to first create a share capital structure and have a strategic growth plan (SGP) prepared!

Employee Share Ownership

Setting up an employee share ownership scheme is good for business. Innovation flows across the floor rather than down from the top. Employees are more productive.

A PTX provides an exit mechanism for Employees & other Shareholders.

Once listed on your own Company’s Private Trading Exchange (PTX), each Shareholder in your Company is able to offer to sell down some or all of  their shareholding.

Business Succession Planning

We ‘engineer’ succession plans for Baby Boomers wanting to sell-down their Business over time to transition into retirement.

Benefits for established businesses:

  • Provides an exit for founders/baby boomers to cash out; 
  • Makes for a great ‘succession plan’; 
  • Allows key staff & employees to buy in through Employee Share Ownership Participation;
  • Austpac can provide a secondary sale platform (PTX) for all investors;
  •  Once listed on a PTX you can raise extra working capital if required.

Encrypted Stocks & Shares

Transitioning from a private
Pty Ltd Company

In Australia, once the Company exceeds fifty (50) shareholder investors, the Company is obliged to change to unlisted public company (Limited) status. 

As a Public Company it is no longer required to notify ASIC of changes to its register of members, but must maintain an up-to-date register of members (shareholders).

Encrypted Stocks: The blockchain is ideal for maintaining an up-to-date register of members (shareholders). 

Once a Company’s capital raising has closed, either by the Closing date or by the election of the Directors, investors are then able to offer their shares for sale & transfer on the Company’s own Private Trading Exchange (PTX).

...to Limited
Unlisted Public Company

As an unlisted public Company, shares in this Company can be bought and sold. A shareholder may transfer by proper transfer or by an instrument in writing in any form Authorised by the Corporations Act 2001, or in any other form that the Company’s Director’s may approve.

The Directors may only decline to register a transfer in circumstances where the transfer is not in a registrable form or where the Corporations Act 2001 provides or would require that the registration be refused.

Note: The Company must now have a minimum of three (3) directors & must appoint an auditor within one month of becoming an unlisted public company.

What is a Private Trading Exchange?

A Private Trading Exchange (PTX) is a legally compliant Internet-based private securities trading exchange that is set up and owned by company that has issued, or proposes to issue, securities by undertaking an Initial Private Offer (IPO) in order to raise funds from investors.

A PTX may also be established by accountant or other business advisor that acts on behalf of multiple companies that have issued, or propose to issue, securities in order to raise funds from investors.

You may prefer to view the PTX slide deck.

PTX Explainer Video

Click on the image above to see an example of a PTX for Equity securities.

Order your own Private Trading Exchange today!

When seeking investors for your business, it’s helpful if you have …

  • A convincing, compelling, credible story;
  • A balanced, passionate, capable and likeable team;
  • Lots of suitable people to share the story with and engage;
  • Lots of compliant ways and means to tell the story.

If you need help drafting a legally compliant investment offer document embodying your story you can contact us, or one of our Independent Consultants, to get your Initial Private Offer to issue Equity securities to raise capital underway.

Ask us to prepare a no-obligation share capital structure and strategic growth plan for your Company.

Warning to Issuers!

In most jurisdictions around the world it is illegal for any person or company to ask two or more people to invest in a business venture, or other investment, without complying with legal rules set down by the Corporate Regulator in that country.

These rules will apply when making an offer to issue securities is made to members of the public. However, sophisticated, professional and accredited investors can have investment offers made and accepted by them.In Australia, the limit on retail investors is set by the Corporations Act 2001 Sec. 708, which allows up to 20 retail (Mum & Dad) investors in any 12-month period not exceeding $2million in total investment. Any sophisticated, professional or accredited investors (as defined), and anyone who invests $500,000 or more (this is called the Gold Card exemption). These investors are outside of the count (of 20) and is unlimited as to numbers of investors and total amount raised

The Corporate Regulator in the United States is the Securities and Exchange Commission (SEC). Wherever the jurisdiction you are in, the issuer should always check with their local Corporate Regulator and/or seek legal or other professional advice before making any offer to invest. There are fines and jail terms for those who breach the law in this regard and ignorance of the Law in no excuse.

Warning to Investors!

Investing in new ventures is not without risk to your capital. Above all, do your due diligence and risk assessment on the issuing company and its directors before handing over your money!! Should you decide to invest, it’s safer to choose a company that provides some kind of exit pathway for its investors such as a Private Trading Exchange, a trade sale, or eventually, a stock exchange listing.

Venture Capital


Get your Strategic Growth Plan & Share Capital Structure

Our Independent Consultants are here to help their SME clients use some of the tactics the big companies use to raise capital when the banks are playing hardball.

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