Fat Hen is a crowd venture capital firm that runs the first Equity Crowd Funding platform aimed at retail investors. Fat Hen connects investors with small amounts of capital to Australian companies seeking funds. This process is called Crowd Investing.
A new investment platform is set to change the way Australians invest, and change how Aussie ideas receive funding. It is called Fat Hen, a crowd venture capital firm that runs the first Equity Crowd Funding platform aimed at retail investors.
Fat Hen connects investors with relatively small amounts of capital to Australian companies seeking funds. Fat Hen works within the current Australian corporate and financial services regulations to allow retail investors the same access to opportunities as Sophisticated (S708) Investors. This develops an Australian “fair go” playing field for all investors, regardless of their networks or net wealth. This is an Australian first.
Fat Hen can reach out to a wide audience of investors retail and wholesale. This is achieved through a unique share structure and online platform where investors can choose which projects they wish to back. Through the collective voice of the crowd, people power will decide which projects are presented on the platform and which ideas receive funding. If Fat Hen receives sufficient pledges of support for a project and it passes the due diligence process, an offer document will be issued to Fat Hen members in the first instance.
This open letter from Fat Hen VC explains it very well.
Australia deserves better. This brief letter will raise two issues that are currently receiving a ground-swell of public support.
Problem One: Every day Aussies deserve the right to access promising investments
In a world where the rules of money have changed, more and more people have come to realise that saving money in the bank won’t necessarily help them reach their financial goals. Those who actively invest into business ideas give themselves greater exposure to potential capital gains.
Traditionally, access to good investment opportunities has predominately been the domain of private funds and wealthy individuals. Institutional and wholesale investors tend to have more resources to access better information about promising companies. By the time the general public hears about it – the gains have already been made and it is too late (think about the Facebook IPO!).
We believe that people with small amounts of investment capital should be given fair access to the same investment opportunities as wealthier investors in a transparent and accurate manner. We aim to do this. Please read on if you agree.
Problem Two: Access to public funds for Founders
In theory, efficient markets imply that small firms requiring capital can raise the funds they need, in practice this is not so. Limited access may arise as a result of regulations, cost or a lack of knowledge and resources to navigate the road to funding. This means that fewer Aussie innovations ever reach the market which stifles creativity and productivity.
We see many fellow Australians embark on the overseas journey to raise money for their ideas. This is because in other countries the laws allow for easier access to public funding. It other words, a greater number of small investors can support local ideas by funding the business directly (Equity Based Crowd Funding).
What if we could solve the above problems by connecting these two markets? That would mean people looking for great investments could find and invest into companies seeking capital for their innovations.
Seems like a logical step.
Given sufficient due diligence and transparency Fat Hen intends to connect great business ventures with backers looking to put their money to work. The entry point would be just $100. This would be an Australian FIRST. Never before has the general public been able to directly access early stage ventures in this way. It would create a level playing field for all investors, regardless of their networks and net wealth.
Such an open marketplace for investment would mean you could pick and choose exactly where your money is invested. You could make informed decisions about ideas and companies you want to support. This could be a game changer for investors and entrepreneurs alike.
Via Fat Hen, business owners will now be able to raise capital directly from the crowd (general public) in exchange for equity in their concept. This will mean more access to capital for Australia businesses in way never seen before. Fat Hen is inviting entrepreneurs and investors alike to express their interest at www.fathen.vc.
“Now every day Aussies can invest small amounts of capital in exciting concepts from new and existing companies. In the past these opportunity were the sole domain of larger investors” says Glen Rothlisberger, COO at Fat Hen.
Talking with Glen, what I really liked was the fun chicken terminology, investors get eggs, the news letter is called Chook Feed and they aim to keep it fun and engaging. It is a Crowd Equity platform after all!
Launching with a free information session on Thursday the 10th of July they encourage professionals, business owners, mum & dads, media and entrepreneurs to share in the drinks and food by attending this one hour special event. Attendees will be able to learn how entrepreneurs are riding the wave of public capital support and how small investors can put their money to work. Plus meet the founders of Fat Hen.
Get your tickets to this information/launch event here.
Visit www.FatHenVC.com to register for the Chook Feed…
My take on this product is that if it works as intended, and startups and investors get a frictionless and fair experience, this could be the real ‘kickstarter’ the Australian Startup community needs. Sign me up for a carton 🙂
You should also watch this cool looking and sounding video overview (did I mention that Glen is an ex-radio announcer and producer?) to see how it works.