Share registry buys startup platform

Nedlands-based Advanced Share Registry has purchased 51 per cent of Perth start-up Private Company Platform, which is targeting unlisted companies with multiple shareholders, including those pursuing crowd-sourced funding.

PCP has been established by Jeff Broun, who said Advanced Share Registry had the systems and support capability to underpin his platform as it progressed to an official launch later this year.

Mr Broun said the initial cash investment was of a modest size but Advanced Share Registry would also lend money to PCP and commit staff and systems architecture.

Advanced Share Registry chairman Simon Cato said PCP had designed a platform to help non-ASX companies prepare for their eventual listing or other corporate event and manage all aspects of shareholder engagement in a streamlined manner.

Mr Broun said the platform was also designed to help companies build their profile and attract a following.

PCP’s system enables potential investors to first become ‘followers’ of a platform company, ahead of share issues to a large spread of investors through an IPO or equity crowdfunding.

It was also seeking to work with companies planning an ownership transition, such as a management buyout with backing by private equity investors.

PCP is developing its system at a time when equity crowdfunding deals are finally starting to happen, after a very long legislative and regulatory process.

OnMarket announced this week it has closed Australia’s first equity crowdfunding offer, with Sydney-based Revvies Energy Strips raising $300,000 from 239 investors.

The minimum investment size into the Revvies offer was $250.

Another equity crowdfunding platform, Equitise, also announced this week it was finalising an offer for aspiring ‘neobank’ Xinja, after raising more than $2 million.

Equitise said the average investment in Xinja was $1,858 with one in four investors contributing the minimum $250.

Onmarket and Equitise were among the first batch of equity crowdfunding platforms to be licenced this year by the Australian Securities and Investments Commission.

The seven include Big Start, associated with Perth business Sharequity). 

Asic's granting of licences followed the passage of federal legislation last year paving the way for equity crowdfunding, which is designed to make capital raising easier for smaller companies.

Eligible companies are able to raise up to $5 million through equity crowdfunding, with each investor able to put in between $50 and $10,000.