Howard Jones has an idea that appears to be able to double the life of batteries used for the storage of electricity in the solar energy market. He becomes aware that crowdfunding is a mechanism for raising capital to develop his idea and bring it to market rather than going down the usual and traditional corporate fundraising process under Chapter 6D of the Corporations Act 2001.
Advise Howard about the potential use of Crowdfunding to develop his idea. In particular answer the following:
a. Define and explain the meaning of crowdfunding and how it actually works as a mechanism for capital raising.
b. Give at least one example of crowdfunding used in a commercial context that has led to the development of a commercial idea, product, good or service and at least one where crowdfunding was successfully used in the social or charitable context.
c. Research and then explain to Howard the legislative framework enacted for the regulation of Crowdfunding in Australia in March 2017 under the Corporations Amendment (Crowd-sourced Funding) Act 2017. Compare the Australian approach to the regulation of Crowdfunding with at least one international jurisdiction’s approach to the regulation of crowdfunding.