CSF Yearbook 2020

Birchal is proud to present the inaugural CSF Yearbook for 2020. This report tracks activity in the Australian crowd sourced funding (CSF) industry.

Summary of the Australian CSF industry in 2020

Since commencement of Australia’s CSF industry in 2018, 118 Australian SMEs have collectively raised over $75 million by issuing shares from their most passionate customers and fans online.

There are now over 55 thousand investors that have participated in CSF offers, and this number has continued to grow despite the impacts of COVID-19.

In 2020, 49 successful CSF offers were completed (approximately the same as in 2019), with a total of approximately $30 million raised (slightly down on 2019’s total of $31m).

2020 was a tale of two halves. Escalation of the COVID-19 pandemic saw activity decrease by approximately 54% in the first half of 2020, compared to the same period in 2019.

Notably, Birchal was the only active platform from escalation of the COVID-19 pandemic in March through to July, closing 11 of its 35 successful offers for 2020 during this period.

The industry has achieved a strong rebound in the second half of 2020, with activity increasing approximately 30% compared to the same period in 2019. The final quarter of 2020 will be the biggest for the CSF industry yet, with over $13 million raised across more than 22 successful campaigns.

Platform performance

Activity in the Australian CSF industry has continued to consolidate during 2020 towards the major platforms: Birchal, OnMarket and Equitise.

Birchal was the clear leader, finishing the year having hosted 70% of all successful deals (35 in total), and raising approximately 68% of all funds raised (over $20 million) across the CSF industry in 2020.

For Birchal, despite the challenges 2020 has been a strong year, posting a 20% increase in funded CSF offers, and a 12% increase in transaction volume for the full calendar year. Excluding the three months to 31 March 2020 (i.e. the “COVID quarter”), Birchal achieved a 36% increase in funded deals, and a 30% increase in transaction volume against the same period in 2019.

Female founders in focus

Approximately 25% of the businesses that used the CSF regime to raise capital in 2020 were founded (or co-founded) by females.

Birchal observes that Female founded businesses raise around 25% more in their CSF campaigns, and over three times as many investors, than businesses that don’t have a female founder or co-founder.

It is common ground that females are underrepresented among startup founders, and venture-backed companies. It has been estimated that female founders get less than 5% of the total venture capital money that’s deployed globally.

Because equity crowdfunding enables founders to side step the old guard, and raise funds from their most passionate customers and fans, it is little wonder that female founders, and the investors that back them, are increasingly finding their voice.

Popular industries in 2020

• Health Care was the most invested in industry in 2020, with 8 successful campaigns raising a total of $7.14 million (or 25% of the industry). The majority of these campaigns were for medicinal cannabis businesses, three of them raising over $1 million: (Cannatrek, $2.5 million; Montu, $2 million; and Compass Lifestyle Clinics, $1.3 million).
• Food & Beverage was the second most invested in industry in 2020, with 8 successful campaigns raising a total of $6.45 million. All but one of these campaigns were hosted by Birchal, and two of them raised over $1 million: (Bunsters, $2 million; Whole Kids, $1.2 million).
• Sustainability and Financial Services were the next most invested in industries, raising a total of $4.35 million and $4.36 million respectively.

CSF activity by company stage in 2020

• Growth Businesses (with greater than $1 million in revenue) raised the most investment under the CSF regime, with approximately $9.3 million raised across eight successful CSF campaigns (31% of the total). The median amount raised for Growth Businesses was approximately $971 thousand.
• Pre Revenue Businesses completed the greatest number of CSF campaigns, with 21 successful campaigns (42% of the total) raising approximately $7.5 million. The median raise for Pre Revenue Businesses was approximately $327 thousand.

Download the report

You can download the CSF Yearbook 2020 here

We’re really excited about what lies ahead for equity crowdfunding in 2021.

Be part of this next chapter. The landscape of capital raising in Australia is rapidly developing and more companies are connecting with their customers to turn them into invested, brand ambassadors.

To find out more behind the data in this report, reach out to our team at Birchal — the platform that connects great Australian brands with the investors that love them. Email us at — raise@birchal.com