Why it matters: Whether you (or your investors) are classified as wholesale or retail under Australia’s Corporations Act determines what deals you can access, how much disclosure you receive, and what protections apply. For founders, the classification shapes how quickly and cost-effectively you can raise capital. For investors, it affects both opportunity and risk. How…

Raising capital in Australia comes with strict compliance requirements, particularly around how many investors you can approach before triggering the need for an Australian Financial Services Licence (AFSL) or a registered prospectus. The 20/12 Rule is a key exemption that both start-up founders and investors should understand. It allows companies to raise limited funds from…

In Australia, not every investor is treated equally under the law. The Corporations Act makes a clear distinction between retail investors, who receive the highest level of regulatory protection, and sophisticated or wholesale investors, who are assumed to have the knowledge and financial capacity to make their own decisions. For start-up founders and capital seekers,…