Making it easier to raise capital

CSF allows Australian companies to raise equity capital from retail and wholesale investors via licensed online intermediaries. Investors purchase shares in your company, typically in smaller amounts than traditional fundraising, and the process is governed by clear ASIC rules.

The campaign is hosted on a CSF platform (like Birchal), where your offer document is displayed, investors can pledge funds, and shares are issued once the campaign closes. This gives businesses access to a wider pool of investors and often turns customers into shareholders.

Eligible companies include unlisted public companies and proprietary companies with less than $25 million in assets and turnover. Financial services businesses or investment vehicles aren’t eligible.

This framework ensures CSF is targeted at operating and growth businesses rather than speculative financial products. Proprietary companies using CSF take on some additional obligations, such as lodging annual reports.

Companies can raise up to $5 million in a 12-month period under CSF. This limit applies across all platforms and all offers combined.

Funds raised outside CSF, such as from venture capital or grants, don’t count towards this cap. Many successful raises fall between $500k–$2m, but companies with strong communities sometimes reach the full cap.

Only fully paid ordinary shares can be offered under CSF. These shares carry standard voting rights and dividend entitlements.

This keeps things simple and ensures investors understand their rights. Complex securities like preference shares, options, or convertibles are excluded to protect retail investors.

Our full process, including preparation, takes 10–12 weeks. This includes compliance checks, preparing your offer document, and running an expression of interest campaign.

The live offer campaign itself usually runs for 3 weeks. Timelines vary depending on how quickly a company can finalise documentation and generate early investor interest.

Your offer document must include company details, a description of the business model, financial position, risks, and how you’ll use the funds. It also needs to explain investor rights clearly.

ASIC requires the document to be clear, concise, and effective so retail investors can understand it. Misleading or incomplete disclosure exposes the company and its directors to liability.

Birchal is the licensed CSF intermediary which hosts your offer, runs checks on the company and directors, and ensures compliance with ASIC’s requirements. We also collect and hold funds until the campaign closes.

Beyond compliance, we provide campaign support, investor marketing, and access to a ready pool of investors.

Any advertising or promotion of your Birchal campaign, from early EOI activity through to the live CSF offer, must include the mandatory CSF advertising risk warning: “Always consider the general CSF risk warning and offer document before investing.” This warning needs to appear everywhere, including pitch videos, warm-up emails, static ads (both in the image and the copy), social media posts, SMS and any other investor-facing communication. Failing to include it is a strict liability offence, with significant penalties applying for each breach.

Beyond the warning, all advertising must be consistent with the information in your CSF offer document and avoid being speculative or misleading. That means no forecasts, promises of returns, or exaggerated claims, and any references to sustainability or impact must be factually supportable. The advertising risk warning is different from the general CSF risk warning shown on the intermediary’s platform, but both work together to ensure investors are protected. In practice, when in doubt, always add the risk warning and keep messaging simple, factual and balanced.

1. Broader access to capital
CSF allows companies to raise money from a wide pool of everyday investors, not just institutional funds or wealthy individuals. This can be especially valuable for early-stage businesses that may not attract VC attention but still have a strong brand, customer base, or community following.

2. Retention of control and ownership
Unlike venture capital, which often requires giving up significant equity stakes, board seats, and control rights, CSF typically allows founders to retain more decision-making power. Investors in CSF usually hold smaller, minority stakes and are less likely to influence day-to-day operations.

3. Market validation and brand building
A CSF raise doubles as a marketing campaign. By inviting customers and supporters to become shareholders, companies turn their community into advocates. This helps validate demand, build brand loyalty, and create a network of investors who are also customers.

4. Flexibility and speed
CSF campaigns are usually time-bound and can be faster than negotiating a VC deal, which often involves long due diligence processes, valuation negotiations, and complex legal agreements. CSF frameworks (like those under ASIC regulation in Australia) provide a clear, streamlined structure.

5. Diversification of funding strategy
Companies don’t have to choose CSF instead of VC, it can complement other funding sources. For example, a CSF raise can bridge early growth before approaching venture capital or be used alongside VC to strengthen brand equity and retail investor support.

6. Alignment with community-driven businesses
CSF works especially well for consumer-facing brands, startups with strong social missions, or businesses with loyal communities. In contrast, VC tends to prioritize scalable, high-return tech ventures.

Companies must lodge annual reports and maintain a proper share register. Once $3 million or more is raised in total via CSF, audited accounts are required.

You’ll also need to manage investor communications, often through regular updates. Meeting these obligations builds trust and helps with future capital raises.

CSF shareholders are excluded from the 50 non-employee shareholder cap for proprietary companies. This makes it legally possible to manage a large number of investors.

Most companies use digital share registry services to manage communications, voting, and compliance efficiently. This keeps administration practical even with hundreds of retail investors.

Birchal charges an upfront fee and a success fee, typically around 5–8% of funds raised. There may also be administrative or compliance fees.

CSF is widely regarding as being a cost-effective model for many growth businesses.

If the minimum target set in your offer document isn’t met, all investor money is refunded. Funds are held in trust by Birchal until the campaign closes.

For founders, this means setting a realistic minimum subscription is crucial.

Yes, you can run multiple raises provided you don’t exceed the $5m cap in any 12-month period. Many companies run successive campaigns as they grow.

Between raises, regular investor updates help keep shareholders engaged and supportive. Transparency and communication are key to repeat success.