VentureCrowd is now the largest crowdfunding platform in Australia by volume of capital raised following its acquisition of SMSF Properties Australia.
The consolidated group brings together VentureCrowd, a more traditional crowdfunding platform, with SMSF, a crowdfunding model for property investment and development.
The deal creates a new entity with over 37,000 investors, representation in Brisbane, Sydney and Melbourne, and over $98 million capital raised in total. Business News Australia can reveal that the merged entity is valued at $36 million.
VentureCrowd now offers investment opportunities in venture capital, property development, and fixed income credit.
The company says it will now be the first equity crowdfunding platform to offer a green field property fund with an annuity-style return.
VentureCrowd is optimistic about the future of the consolidated group, suggesting that over the next 12 months the entity is set to double its capital raising volumes to $75 million.
"The SMSF Group immediately accelerates VentureCrowd's property crowdfunding capability, expands our team and gives us presence in the Brisbane market," says CEO of VentureCrowd Steve Maarbani.
"There will certainly be consolidation in the industry, and we want to lead that consolidation. The key benefit of the merged entity is that it will provide more opportunities to the crowd than ever before."
VentureCrowd is moving fast to consolidate the market, especially considering how retail crowdfunding legislation was only passed in September 2018.
This fast rate of consolidation mirrors what has happened in the United Kingdom. Four years after the introduction of retail crowdfunding legislation in the UK over 24 per cent of all venture capital invested is now done through one of two digital platforms.
According to KPMG venture capital investment in Australia in 2018 reached a record $1.28 billion. Equity crowdfunding in Australia is expected to be worth in excess of $427 million by 2022 in venture capital alone.
Business News Australia
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