Global FinTech Guide
Country Name
Crowdfunding / crowdinvesting / crowdlending
FinTechs belonging to this category operate crowdfunding, crowdinvesting and crowdlending platforms on which money is raised to invest in various projects, mainly start-up companies and real estate projects.

Crowdfunding is not a defined financial service, but generally used to describe donation-based crowdfunding (the investor donates the money to the project), reward-based crowdfunding (the investor receives an often symbolic consideration for his investment), equity-based crowdfunding (crowdinvesting: the investor participates in the profits of the financed project or acquires shares or debt instruments) or lending-based crowdfunding (crowdlending: the investor is reimbursed at the end of the project with or without interest).


Attitude of the country towards crowdfunding, crowdinvesting and crowdlending platforms

Crowdfunding platforms have generally been well received within Australia. Given greater legislation introduced in 2017 amending the CA and ASIC Act by the Corporations Amendment (Crowd-sourced Funding) Act 2017, it has become easier for both businesses and individuals to utilise crowdfunding as a legitimate capital-raising option.

Legal affairs

Obligations and requirements to provide crowdfunding, crowdinvesting and crowdlending platforms described above

Crowd sourced funding intermediaries have specific obligations under the CA that are required to be met for an intermediary to be able to offer a crowdfunding service. Intermediaries are required to hold an AFSL and are bound to follow the obligations under Section 912 of the CA. The cost of a licence is set out in schedule 1 of the Corporations (Fees) Regulations (CTH) 2001 and varies based on if an individual or body corporate is applying, whether it is an online or paper lodgement, and on the complexity of the product.

Additional comments regarding the legal situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area


Economic conditions

Market size for crowdfunding, crowdinvesting and crowdlending platforms and biggest companies in this business area

The estimated market for crowdfunding in Australia increased significantly in 2021, with a 125% improvement from 2020. The total raised across all platforms was estimated at AU$46 million during the financial year.

FinTech companies Lumiant and Thrive were major benefactors receiving AU$1.16 and AU$3 million respectively.

Additional comments regarding the economic situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area




© 2022, Macpherson Kelley. All rights reserved by Macpherson Kelley as author and the owner of the copyright in this chapter. Macpherson Kelley has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this guide.

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.


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