Artesian Ventures has unveiled a new equity crowdfunding platform, VentureCrowd, to focus on crowdfunding investment finance.The new VentureCrowd platform, which includes 200 registered investors and 36 start-ups, will allow investors to take equity positions in high growth-potential startups.
VentureCrowd will investors to create a diversified portfolio of startups to achieve profitable investment returns and mitigate the inherent risks involved in investing in individual startups.
Registered VentureCrowd investors will be given an opportunity to invest in companies that have been pre-screened through Artesian’s partner channels, as well as startups that register directly on the site.
VentureCrowd, which allows business investment and the sale of equity, will promote more liquidity by having a pool of investors put money into custom start-up index funds.
Furthermore, the crowdfunding platform will enable investors to buy equity in any start-up on the site, with a minimum investment of $1,000.
Jeremy Colless, managing partner at Artesian Ventures, said: "VentureCrowd will democratise the early stage finance sector in Australia in a way that has never been done before. It will not only help Australian entrepreneurs secure backing for their ideas, but it will allow a wider range of investors to share in the success of high growth startups.
"More than 50% of startups fail, and the distribution of outcomes is asymmetrical. Approximately 90% of the returns in a diversified portfolio come from 10% of the startups. This is the reason that a filtered deal flow and a diversified portfolio are critical strategies for early stage venture investors," Colless added.