Matt Vitale of Birchal. Source: Supplied
Something remarkable happened last week. For the first time, successful CSF offers (crowdsourced funding offers, I’ll explain later) exceeded ASX IPOs in a fiscal year.
Comparing a CSF and an ASX IPO process from an early-stage growth company’s perspective, one could see how this might become a trend, and not be a one-off. Side by side, I’ve observed that CSF offers are drastically faster, cheaper, and simpler to bring to market than an ASX IPO.
Also, CSF offers are open to everyone, not just insiders. And because CSF securities cannot be traded easily, successful CSF companies often end up with a community of supporters that are comfortable to buy and hold, rather than a community of traders with purely mercenary interests.
In the 12 months to 30 June 2023, a total of 85 successful CSF offers were completed, compared to just 57 ASX IPOs in the same period, as Birchal reported in its annual Funded! Report last week.
If you haven’t heard of CSF before, now might be the time to start paying attention.
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