Mortgage marketplace startup HashChing, a fintch startup disrupting the monopoly of the big banks, has launched an equity crowdfunding campaign.
It’s currently live on the Equitise platform, which has one of the seven crowdfunding licences issued for the first time this year.
HashChing, which is seeking between $1 million and $5 million, has so far raised $286,500, at a minimum $250 investment, with another eight days to go.
“A slight difference in interest rates can cost a homeowner thousands of dollar each year,” says Mandeep Sodhi, founder and CEO.
“This is why one out of two Australians like to deal with a mortgage broker instead of going direct to the bank.”
HashChing, which launched in August 2015, provides a channel for potential borrowers to access home loan deals that have been pre-negotiated by brokers. The current pool now represents 60 banks and non-bank lenders.
This means interest rates offered through the app are often far lower than the big four banks’ standard offerings, which are currently around 4.5%.
In 2017, Hasching wrote $540 million worth of home loans.
Equitise was the platform behind Australia’s first equity crowdfund for digital bank startup Xinja which raised $2.4 million.
Co-founder Chris Gilbert says currently only 1% to 2% of startups he sees go through to become a crowdfunding project.
“As our investor audience grows we will probably widen that and include some earlier stage businesses,” he told Business Insider.
“We have a specific mandate at the moment for businesses that have traction, they have revenues, they have a technology platform launched … we are really looking for tangible growth businesses.”
Seven companies were issued Australian Financial Services authorisations to provide crowd-sourced funding. Equity crowdfunding enables Australian retail investors to invest as little as $50 or as much as $10,000 in a business.
New legislation enabled by the Crowd-sourced Funding Act 2017, allows companies with less than $25 million in gross assets to raise up to $5 million a year.
Retail investors are able to invest up to $10,000 per company a year.