Investors pour $8m into local firms as WA claims outsized share of national crowdfunding market

WA startups hauled in almost $8 million from everyday investors last financial year, capturing nearly one-fifth of the nation’s equity crowdfunding market despite representing only a fraction of Australian businesses. Collie medicinal cannabis grower Cannaponics led the charge with a $2.78m raise from 1444 investors, the biggest crowdfunding winner in the country, while Fremantle Seaweed, SavvyWise and Escape This also finished among the national top 10. The surge comes as investors increasingly look beyond shares and property, with more than 11,000 Australians tipping millions into startups they believe could become the next big success story. OnMarket chief executive Dan Haber said WA’s standout performance showed investors were increasingly willing to back innovative local businesses despite ongoing economic uncertainty. “These are not early-stage concept businesses,” he said. “These are companies with clear commercial pathways, strong founder credibility and defined communities of supporters who became investors.” Fremantle Seaweed founder Chris de Cuyper said venture capital’s preference for relatively quick returns did not suit a pre-revenue aquaculture company working through cultivation, cattle-feed trials and regulatory approvals. “We needed investors who were backing what we are trying to achieve, not just looking for a quick return,” he said. “We were pre-revenue and honest about it, but we laid out exactly what the path to revenue looked like, step by step, and people backed it.” The company attracted 676 investors, many with ties to farming, climate technology and marine industries. “That is not just a funding round; that is a community of advocates,” Mr de Cuyper said. The same dynamic played out at SavvyWise, with accountants making up 39 per cent of investors and contributing half the capital raised, averaging $4575 each. Campaign adviser Drew Lambert said the accounting profession had rallied behind the business it already used. “The campaigns that perform best are the ones where your potential investors are already your customers,” he said. Thousands of Escape This customers also bought into the company during a $1.4m raise to fund national expansion after its flagship Perth CBD venue generated $2.4m in annual revenue. Founder Bernie Janes said many shareholders were customers who wanted to help grow the business. “They’ve played our rooms and want a stake in the future of live immersive entertainment,” he said. Cannaponics had already built a large shareholder base through previous crowdfunding offers, including a $5m raise in 2023, the maximum allowed under Australian crowdfunding rules. Backed by a $2m government grant and more than $25m in private capital, Cannaponics is scaling up its 67-hectare commercial farm and has ambitions to eventually list on the ASX. Founder and director Rod Zakostelsky said the fundraising success crowned a breakthrough year for the Collie company. “Every milestone’s come from long hours, a shared vision and a lot of heart. We’re open for business, offering premium WA-grown medicinal cannabis, contract cultivation and manufacturing partnerships.” Nationally, 49 successful crowdfunding campaigns raised $40.6 million last financial year, rebounding from $28.8m the year before as investors backed fewer but larger capital raisings. The average raise jumped more than 50 per cent to almost $829,000, while about 5000 more investors entered the market. OnMarket, which hosted WA’s four biggest raises, handled about 73 per cent of funds raised nationally. Managing director Tim Eisenhauer said higher interest rates and economic uncertainty had made both companies and investors more selective. “The companies that waited, prepared properly and came to market with a clear growth story have been rewarded for it,” he said. Mr Eisenhauer said investors were increasingly backing more mature businesses with clear expansion plans rather than early-stage ventures seeking proof-of-concept funding. Australian companies have now raised more than $380 million through equity crowdfunding since the regime began in 2018.