Avestix is launching a record-breaking $5m crowdfund today; but how’s it different from Brickx?
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Today Avestix will launch what it hopes will be Australia’s largest equity crowdfunding raise – smashing the $2.6 million raise Xinja made earlier this year.
It wants to raise $5 million to acquire further properties as it seeks to offer “fractional ownership of real estate” property.
But hang on. Doesn’t this already exist? Haven’t they heard of Brickx?
CEO Susan Lindeque told Stockhead her company is very different. While Brickx customers buy bricks in individual companies, Avestix is a diversified real estate portfolio.
“Brickx is more an eco model while the mum and dads buy shares in this company,” she said. “My aim specifically is to grow this company substantially so we will acquire properties and then people will buy into the equity [of Avestix].”
“They’ll get dividends on a quarterly basis and we will take care of the properties. Also, we provide an exit strategy. Once year at our AGM we will take applications for a people to buy back at their shares.
“In seven years time, we will sell the properties and then acquire new properties but also hopefully the share price will increase substantially so it is different.
“They don’t just get a share in property but in a company that will grow and assets that will be debt free and diversified.”
While she mentioned the words “mum and dad investors”, she stressed millennials were welcome. In fact it was an ideal way to get into the property market without the associated difficulty, even if you could get in.
“We understand every day Australians and especially young people who can’t get a 20% deposit and serviceability its hard to get in,” she said.
“But [once in] then they have responsibility of taking care of property. They don’t have to risk because someone else does in terms of managing properties, getting tenants in – so I think that’s the big thing.”
She has spent over nine years as CEO of property development Lindzen as well being as a mother of millennials, and her experiences inspired her to create this company.
“I think its my background in terms of property has let me seen the opportunities. I was surprised no one else has picked up on this.”
But it will also be a big day for equity crowdfunding. Individual deals have stood out such as Xinja and all-female ridesharing platform Shebah. This deal aims to be a record for Australian crowdfunding and the platforms are just as excited as the companies.
Yesterday, Stockhead also spoke with OnMarket managing director Tim Eisenhauer as his platform prepared to welcome Avestix onboard.
“They [our clients] want access to innovative, disruptive, growing and emerging Australian companies and that’s what we have to offer them,” he said.