Equity crowdfunding has been celebrated as a game-changing alternative to venture capital and traditional business loans but has until recently been off limits to most retail investors.

With the lifting of Australian restrictions on who can use equity crowdfunding platforms, there is cautious uptake from consumers and start-ups – with several platforms establishing a clear lead – but the claim of outsize returns will take time to be tested.

Over the last decade, the types of investments included in the crowdfunding category have grown from hobbyist items (clothing, artisanal alcohol products, and niche new devices) to traditional assets – such as property, debt (e.g., mortgages, student loans, business loans), and start-up securities – to non-traditional or exotic offerings such as new currencies and initial coin offerings (ICOs) of custom virtual currencies designed to raise capital for use in platforms such as AngelList, Republic, and now Indiegogo.