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What do I get if I invest?
When you invest in businesses featured on Swarmer you’re becoming a shareholder in some of Australia's fastest growing start-ups/scale ups. Who knows what they might look like in the next 10 years?
As a shareholder in the business, you get a shareholder certificate which outlines your ownership based on the investment amount you made.
Instead of stocks that can be bought and sold on a public platform like the ASX, you will own a part of the business alongside the owner and other investors.
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When do I see a return on my investment?
Whilst you can't simply "cash-in" your shares, you will see a return on your investment when there's a future "liquidity event". This is an opportunity where investors can sell shares or otherwise receive returns. These events can include situations where:
- The company you invest in sells to another company
- The company undertakes an Initial Public Offering (IPO) and lists on a registered stock exchange
- The company buys back the shares you invested
- You sell your shares to another person (if private sales of your shares are allowed)
- A company provides dividend payments to its shareholders
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Is Swarmer licensed and regulated?
Yes. In Australia, Swarmer holds an Australian Financial Services License (AFSL 507867) issued ASIC and is a member of the Australian Financial Complaints Authority.
You can be confident you are working with a trusted and licensed provider. We are happy to answer any questions you might have around your protection, simply get in touch.
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What is equity crowdfunding?When you invest in businesses featured on Swarmer you’re becoming a shareholder in some of Australia's fastest growing start-ups/scale ups. Who knows what they might look like in the next 10 years? As a shareholder in the business, you get a shareholder certificate which outlines your ownership based on the investment amount you made. Instead of stocks that can be bought and sold on a public platform like the ASX, you will own a part of the business alongside the owner and other investors.
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Is equity crowdfunding legal in Australia?Yes, but only if one has the appropriate licences. In Australia you require an Australian Financial Services Licence to provide a Crowd-Sourced Funding Service granted by the Australian Securities and Investments Commission (ASIC). Swarmer has this licence.
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How long has equity crowdfunding been around?While equity crowdfunding is well established in overseas markets (eg. US, UK, China), it is relatively new in Australia. In recognition of the importance of helping small companies obtain funding and assisting every adult Australian to easily invest in unlisted companies, Federal Parliament passed the Crowd-sourced Funding Act in 2017.
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Who can join Swarmer?If you wish to join Swarmer then you must become a member by registering on our website. Only individuals who are 18 years or older are permitted to be a member of Swarmer.
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Is Swarmer licensed and regulated?Yes. In Australia, Swarmer holds an Australian Financial Services Licence (AFSL 507867) issued ASIC and is a member of the Australian Financial Complaints Authority.
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Is my personal data secure?We will not share your contact details with any third-parties. When you enter information on our website, your details are passed to our secure AWS hosted servers using the latest Strong SHA2 & 2048-bit encryption SSL (secure sockets layer) which is the industry standard for securing websites. In layman terms, all information passing to and from our website is scrambled by encryption that's virtually unbreakable by hackers. Secure passwords are enforced.
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What are the benefits of equity crowdfunding?For companies, the benefits are easier access to capital, the opportunity to create a base of brand ambassadors and potentially reduces your investment in marketing.
It provides companies with a community and enables them to build relationships with partners and customers alike. It also gives companies with the opportunity to validate their product / project with potential customers via an expression of interest campaign.
Companies that crowdfund via Swarmer, have the opportunity for post-raise advisory, mentoring and support, ensuring a greater chance of ongoing success and growth.
For investors, it’s fun to invest and own a piece of a company, brand or product you love!
It provides investors with access to interesting and innovative early and growth stage opportunities and the potential for lucrative financial returns, if the company does well.
About equity crowdfunding
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Who is Swarmer?Swarmer is an Australian equity crowd-sourced funding (CSF) platform. We help founders wanting to raise equity funds to secure capital to grow their businesses from everyday Australian investors. Our platform provides investors with a wide range of investment opportunities in various sectors and growth stages. Check out our latest offers here.
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Is Swarmer licensed and regulated?Yes. In Australia, Swarmer holds an Australian Financial Services Licence (AFSL 507867) issued ASIC and is a member of the Australian Financial Complaints Authority.
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What type of due diligence do you complete?We review all requests for capital and undertake a due diligence process before posting the request online. Our disclosure statement outlines the due diligence completed by Swarmer.
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Is equity crowdfunding legal in Australia?Yes, but only if one has the appropriate licences. In Australia you require an Australian Financial Services Licence to provide a Crowd-Sourced Funding Service granted by the Australian Securities and Investments Commission (ASIC). Swarmer has this licence.
About Swarmer an ASIC licensed platform
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How do I see a return on my investment?
Investors may see returns after an "exit" event. This is an opportunity where investors can sell shares or otherwise receive returns. These events can include situations where:
- The company you invest in sells to another company
- The company undertakes an Initial Public Offering (IPO) and lists on a registered stock exchange
- The company buys back the shares you invested
- You sell your shares to another person (if private sales of your shares are allowed)
- A company provides dividend payments to its shareholders
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Can I sell my shares?Instead of stocks that can be bought and sold on a public platform like the ASX, you will own a part of the business alongside the owner and other investors. Shares purchased in an equity crowdfunding business are a long-term investment, as you will not be able to sell your shares quickly if you need the money or decide that this investment is not right for you.
What happens when I invest in an equity crowdfunded business?
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How do I invest?Before making an investment you need to sign up to Swarmer. Once you have signed up you will then have full access to the companies seeking to raise capital through Swarmer. Prior to making an investment you will need to establish your profile and have the option of inputting your investment preferences. The information requested in your profile is required by Swarmer to verify your identity. When you find a business you want to invest in read their Company offer document and the CSF risk warning, taking note of any fees we charge. Understand the cooling-off rights, ask any questions and finally make sure you read the financial services guide here . Finally, pay securely through our platform to secure your investment and you’re done! You will then be a shareholder in a company you believe in.
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How are investors classified as retail or wholesale?All members from Australia are initially classified as a Retail Investor. A retail investor is anyone who is a resident of Australia and over the age of 18. A retail investor can invest as little as $100 and as much as $10,000. A wholesale investor is defined as someone who has a gross income of $250,000 or more per annum in each of the previous two years; or has net assets of at least $2.5 million. Wholesale investors are not limited to a maximum investment amount. To change your status to a Wholesale Investor please visit here
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What is the minimum and maximum that I can invest?The company raising the capital may choose to set the minimum and maximum amount that can be invested by an individual. However, Australian retail investors are restricted to a maximum AU$10,000 per company.
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What type of due diligence do you complete?We review all requests for capital and undertake a due diligence process before posting the request online. Our disclosure statement outlines the due diligence completed by Swarmer.
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What are the risks involved with investing in companies through Swarmer?Investing in companies through Crowdfunding websites is inherently risky, because the amount of information disclosed will typically be less comprehensive than is otherwise required by securities laws, so please ensure you always consider the risk warning and offer document before choosing to invest Our team works very hard to ensure we bring you great Companies and deal opportunities to invest in. Swarmer cautions that investment through Crowdfunding websites like Swarmer’s should be done only as part of a diversified portfolio, and investors are strongly recommended to undertake their own due diligence and investigations (including taking financial advice) before committing to an investment. Our platform and technology is built with our customers’s safety and security at the fore and we are licensed by the Australian Securities and Investments Commission and hold an Australian Financial Services License to bring you the Swarmer service.
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Who determines the company's valuation?The directors of the company itself determine the valuation of the company usually after taking professional advice on the value of the company, which is a requirement of Swarmer's.
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What type of equity can be offered by the company?In Australia, companies may only offer ordinary shares.
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What happens if the company doesn’t reach its raise capital target?For companies which do not meet their minimum capital raise all funds will be returned to investors in full.
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What happens once a company has reached its target?Once reaching the maximum target set by the company no further investments can be made. We then arrange for the company to issue shares to the investors and for funds to be released from our trust account and paid to the company.
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When will the funds be transferred to the company?Once the company has confirmed that shares have been issued to the investors the funds will be released from our trust account and paid to the company.
Making an investment
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What rights do I have as a shareholder?Your rights will vary from offer to offer. Your rights will be summarised in the information materials posted by the company raising capital. As a general rule, holders of ordinary shares have rights to vote at meetings of shareholders, to receive any dividends that may be declared on the shares and to a return on capital should the company be liquidated (and should there be funds available for returning to shareholders). It must be remembered that investors through Crowdfunding services typically are minority shareholders where the majority shareholders have dominant voting rights as to, for example, appointment and removal of directors and approval of major transactions.
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Will my investment be made public?If you wish to remain anonymous to the public you can choose this option at the time of investment. You can also set up an Alias on your profile on the Swarmer website.
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What is the cooling-off period?In Australia, under the Crowd-sourced funding legislation, an Australian Retail investor has the rights to a 5-business day cooling-off period following an investment. If an investor wishes to withdraw their investment for any reason (including changing their mind about investing in the CSF Company), they must do so within five business days of making their application.
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How does an Australian retail investor withdraw an investment during the cooling-off period?To withdraw an investment a retail investor must go to their profile page on the Swarmer platform. Under their profile page there is a section for “My Investments” which provides details of any investments that have been made. For Australian Retail investors, there is a button against the investment that says “withdrawal”. This button remains against the investment for 5 business days following the investment. To withdraw the investor hits the button. Swarmer will then transfer the funds from our trust account back to the investors account.
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Can I sell my shares?Shares in private Companies are not easily re-sold, as they are not traded on a stock market. You will be able to sell your shares in the future if the Company lists on the stock exchange or is acquired by another Company.
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Can I be involved in the company's day to day running after I invest?Generally, the answer will be no, although significant investors through the Swarmer website may be able to agree with the company to have an ongoing involvement (e.g. as a director). Investors invariably will have voting rights at annual general meetings. The documentation signed between the company and investors will contain a number of information and disclosure obligations on the part of the company to keep investors informed in the future.
Your rights as an investor
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How do I make the payment to the company?Once you commit to invest your investment amount will be direct debited from the account you provided to us (for Australian investors) or you will be provided the details of our trust account (for International investors). Your funds will be held in a secure bank trust account until the offer is completed at which point the funds are paid across to the issuing company and shares are issued to you.
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I don't want to make a payment over the web, can I call and speak to someone to do it over the phone?Yes, this is possible. Please reach out to use over live chat and we can arrange a call to you.
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What fees do you charge investors?There are no fees charged to investors.
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I want to invest more than $10,000 in a company. How to I change my Investor Type to a wholesale or sophisticated investor?A wholesale investor is defined as someone who has a gross income of $250,000 or more per annum in each of the previous two years; or has net assets of at least $2.5 million. Wholesale investors are not limited to a maximum investment amount. To change your status to a Wholesale Investor please visit here