Startup Daily TV: Crowdfunding platform Birchal is raising $3 million to take CSF to the next level

The platform behind 75% of Australia’s equity crowd-sourced funding (CSF) activity, Birchal, is running an equity crowdfunding campaign on its own platform, a first for any CSF platform in Australia, so retail investors can buy shares in the company.

Birchal also revealed one of its main backers is Dom Pym, cofounder of next-gen digital bank, up.com.au, recently acquired by Bendigo Bank.

Pym has committed to upcoming Birchal raise, which opens this week and is looking for up to $3 million.

“Although equity crowdfunding has only just started in Australia, it’s been around for a while overseas, and I’ve been following it globally,” he said.

“I am an investor in Seedrs and Crowdcube [two major UK platforms] and I’m also a participant in AngelList in the US, so I have seen how impactful businesses like these have been to startup communities over there.

“Using equity crowdfunding platforms, I’ve invested in heaps of fintech and environmentally focused businesses globally, so was thrilled when I could do this in Australia as well.”

Birchal co-founder and managing director Matt Vitale said the CSF campaign for the company comes as it hits $100 million raised on behalf of the platform’s clients.

“[It] couldn’t happen at a more perfect time than announcing our plans to establish an equity crowdfunding ecosystem,” he said.

“There is currently no organised marketplace available for retail investors to trade securities in startups and SMEs – so we’ve decided to focus on providing a range of solutions to solve this. Effective secondary trading solutions will reduce binary ‘win/lose’ outcomes for founders (and employees) of startups and SMEs; and also provide more opportunities for investors to realise returns on their investments.

“The first step is Birchal Trade, a technology solution for companies to manage the operation of a ‘Low Volume Market’ in Australia, which can facilitate up to 100 transactions and $1.5 million within a 12 month period, available to retail investors, without the need for a market licence.

“This service has been built, with plans to offer the first pilot in 2022.”

Vitale said the company’s numbers are looking very strong.

The highlights are:

$100m raised (amount realised 17 March, 2022)
a market-leader (with 75% share) of rapidly scaling Australian crowd-sourced funding industry growing at 70% CAGR (2018-21), estimated to be circa $500m by 2024.
Achieved $2.2m revenue for six months ended 31 December 2021, with 42% operating margin.
28 average inbound company prospects per week.
This is on the back of a very successful 2021 when Birchal achieved a 160% increase in funds compared to 2020. The platform completed 59 successful deals (66% market share), raised $53.5m funds (75% market share), and worked with 31,800 investors (85% market share).

More on Birchal’s crowdfunding campaign at birchal.com/company/birchal

Startup Daily editor Simon Thomsen spoke to Birchal co-founder Matt Vitale on the Startup Daily show about the latest news in the crowdfunding sector’s growth and the company’s own raise.

Click on the link below to hear the interview.