Once you've raised funds from the general public through crowdfunding, you will likely need to prepare general purpose financial statements for your shareholders. General purpose financial statements are those prepared in accordance with standards issued by the New Zealand External Reporting Board.
Equity crowdfunding is the popular term for what is essentially online capital raising. A licensed equity crowdfunding platform such as AlphaCrowd, allows companies to prepare an investment offer and raise capital online.
In my opinion, the biggest downfall of the NXT rules as they stand is that for a capital raising listing, the issuer must raise at least $5 million. This may prove difficult in New Zealand for many of the NXT's target companies.
Venture capital is funding for new businesses and startups with perceived long term growth potential. Within venture capital there are many stages of funding such as seed stage, early stage, later stage, Series A, Series B, Series C, etc. What is often confusing for entrepreneurs and even those investors new to early stage investing are the many ways that different stages are described and referred to.
In New Zealand, equity crowdfunding offers companies a way of raising up to $2 million in any 12 month period with simpler compliance obligations. It is the process by which a company can issue shares to the public in exchange for investment. In New Zealand, this is provided for by the Financial Markets Conduct Act 2013 and regulated by the Financial Markets Authority.