EQUITY crowd-sourced funding platform Capital Labs is powering a new era in Australian healthcare innovation with a successful raise of more than $800,000 for medicinal cannabis start-up Greenfield MC Global. 

Greenfield MC Global raised a total of $828,476 from 547 investors by partnering with Capital Labs, surpassing its minimum target of $500,000 days before the raise closed on Thursday December 12.

“At Capital Labs, we partner with strong companies creating innovations with impact, who are ready to scale-up,” said Joseph Barry of Capital Labs.

“We know the challenge for many innovators is accessing the expertise that’s needed to future-proof their company with a realistic valuation and capital raise, marketing strategy and solid brand recognition. This is where we are more than a platform; we’re a full-service capital raising partner,” Mr Barry said.

Part of The iQ Group Global investment enterprise, companies which partner with Capital Labs gain access to investment banking experts who structure the raise for future exit opportunities, such as a public offering, and marketing expertise to generate publicity and reach untapped like-minded audiences.

“When we partnered with Greenfield MC Global, they accessed our in-house experts as part of their full-service capital raise, including a bespoke marketing and media campaign, video production service and audience development strategy," Mr Barry said.

“The targeted campaign didn’t just result in a successful raise beyond their minimum $500,000 target, it generated publicity and investor spread that has set them up for a future listing, slated in their offer document for 2021, so that Greenfield MC Global can drive a new future in patient care for Australia,” Mr Barry said.

One of the first ASIC authorised equity crowd-sourced funding (CSF) platforms in Australia, Capital Labs only partners with companies launching technology and innovations that have a positive impact on Australia’s future. For investors, Capital Labs provides access to early-stage retail investment opportunities in innovative companies and technologies in a variety of sectors for as little as $100.

“Capital Labs has a unique competitive advantage by leveraging the group’s in-house expertise in asset management and investment banking. This intellectual property is not typically afforded to start-ups but is critical for creating value for investors and ultimately for delivering life-changing innovations to the world,” The iQ Group Global chairman and CEO, George Syrmalis said.

After their successful raise with Capital Labs, Greenfield MC Global is ready to hit the ground running next year.

“Capital Labs’ robust full-service offering enabled us to achieve nationwide outreach to a crowd of passionate investors who we otherwise could not have reached and who could not have otherwise accessed the investment offering,” Greenfield MC Global chairman and president, Arjun Chhabra said.

“With this raise and our new community of investors, we are thrilled to be a force in redefining the healthcare landscape in Australia from 2020.”

ends

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell says the Insolvency Practices Inquiry has heard a vast number of harrowing small business stories, shining a light on the failures of the insolvency system as well as the challenges faced by industry professionals.

Ms Carnell today released a discussion paper, seeking feedback on developing a best practice framework for small businesses facing insolvency and for practitioners managing external administrations.

“More than 300 small businesses have come forward to share their experiences of going through the insolvency process,” Ms Carnell said.

“Many have spoken of being left with nothing – no business, a ruined reputation and often no home and broken families. It’s absolutely gut-wrenching.

“The overwhelming experience of small businesses has been a loss of control, costs that strip the value of a business and a lack of transparency throughout the process.

“We also appreciate the constructive feedback we’ve had from insolvency practitioners, industry groups, lawyers and financial advisors," Ms Carnell said.

“They have sent the clear message that small businesses experiencing financial difficulties are often leaving it too late to seek help.

“What we know is the sooner small and family businesses get help, the more likely it is they can achieve a turnaround or restructure.

“ASIC has just released new data revealing more than 8,000 businesses entered external administration in 2018/19. 51 percent of those businesses reported inadequate cash flow as the key cause of failure.

“It’s crucial that small and family businesses experiencing financial difficulties understand they don’t have to go it alone. This is the time to lean on a trusted advisor, like an accountant," Ms Carnell said.

“Industry professionals have also called for a streamlined insolvency process for small business, with minimal red tape that provides a real option to turn around the profitable parts of the business.

“In releasing this discussion paper, we’ve outlined the key pain points for small businesses as well as the challenges for registered liquidators.

“In the meantime, this discussion paper poses a number of questions we are seeking feedback on, particularly around the transparency of the insolvency process.

“We have also extended the deadline to share insolvency stories via our online survey or by providing a submission to This email address is being protected from spambots. You need JavaScript enabled to view it. to the end of January 2020.”

The final report will be released in March 2020.

ends

CHRISTMAS is often a time associated with increased financial stress for many Australians. A time of year when household budgets blow out due to presents, special events and summer holidays.

The problem is now amplified with so many different ways to pay – from credit cards and digital wallets to buy-now-pay-later schemes like Afterpay and zipMoney. 

One Australian fintech is using 'open banking' to deliver fairer repayments for people faced with larger than expected bills this holiday season or, in some cases, significant debt.

Split Payments, a Byron-based company which has won accolades in 2019 - including the Australian FinTech Award for Payments Innovation - have created a platform that can eliminate dishonours and deliver a happier path for those struggling to get on top of their bills. 

Kristofer Rogers, Split’s CEO, explained, "By using open banking connectivity, we have created a world-first capability to perform a balance check prior to processing a bank payment. If there are insufficient funds in a customer’s account, we simply notify the merchant and don’t process the payment. This avoids that unhappy path of bank fees for both the customer and the merchant, which is a game changer."

Open banking is a regulatory change being implemented in Australia that requires banks and financial institutions to allow approved third parties to securely access a customer’s transactional data, with their approval, to obtain better financial services. Such a move should level the playing field for financial services providers but also helps technology companies like Split Payments innovate and create unique capabilities. 

Mr. Rogers said, "Without giving away too much of our secret Santa recipe, we have built an enduring consent platform that allows customers to agree to specific terms that allow merchants to perform balance checks and gain a better understanding of spending behavior via machine learning. Ultimately, this technology delivers a fairer outcome. It has also modernised direct debit payments, which were antiquated and not really suitable for the digital economy that we live in today."

Since launching in January 2018, Split Payments has already processed more than 14 million transactions and works with businesses including Australia Post, MoneyMe and illion to deliver new direct debit products.

"We are really proud to sprinkle a little bit of payments magic this Christmas to help Australians doing it tough," Mr Rogers said.

TODAY the PFAS Sub-committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) tabled the first report of its inquiry into PFAS remediation in and around Defence bases.

The chair of the PFAS Sub-committee the Dr John McVeigh MP said that committee members have made a commitment to keep the public informed about Defence’s progress under its National PFAS Investigation and Management Program, while research continues to better understand the nature and impacts of PFAS substances.

This report presents key information from the Department of Defence about its ongoing  evaluation and remediation of per-and poly-fluoroalkyl (PFAS) contamination at 28 Defence sites, and also updated advice about research into the health impacts of PFAS from the Australian National University’s PFAS Health Study, at the National Centre for Epidemiology and Population Health.

"The sub-committee welcomed frank advice from Defence— about what it is getting right in its PFAS remediation program; as well as the nature of ongoing research. The Department also outlined its ongoing communication strategy in communities and online, to keep the public up to date about progress in this work," Dr McVeigh said.

The ANU’s PFAS Health Study provided a progress report on work commissioned by the Department of Health. The Committee heard that the Health study is in a vital phase of evidence gathering and analysis. The data collected will allow for a longitudinal evaluation of any potential PFAS health impacts including any mental health issues. It will be local and verifiable, based on blood samples and surveys of people living in affected communities, of past residents, and of three unaffected communities for comparison.

"The information in this first report provides a solid foundation for further review when the inquiry proceeds in the new year," Dr McVeigh said. "In particular, the sub-committee will seek further clarification from responsible agencies about the relationship between health advice, food safety and environmental impacts which could remain of concern in the community."

The PFAS inquiry’s First report is now available on the inquiry website.

Information about the PFAS Sub-committee’s ongoing scrutiny program, and forthcoming public hearings, will be available on the JSCFADT committee website in 2020.

ends