Australian businesses have traditionally had limited access to early stage capital raising to commercialise technology, start a business or expand an existing business.
Consider these options:
- After the GFC banks implemented tighter credit policies, so it is now almost impossible to borrow without asset backing, and in any case debt funding can place onerous demands on cash flow for many businesses.
- Venture Capital firms are very selective about who they support, generally won’t get involved too early, and often want a large shareholding if not full control.
- Public fund raising via an ASIC-approved Prospectus, or via a full stock exchange listing, is time consuming and expensive.
- Private capital raising involves running the gauntlet of complex government regulations with heavy penalties if you don’t do it right.
- Government grants are only available for very specific situations, require a lot of paperwork, and your timing has to be perfect.
Unfortunately many innovative ideas and thriving Australian companies are simply unable to raise the funds they need to support further growth.
Perhaps a bigger problem is that most serious business people and entrepreneurs are just too busy to tackle the complex task of capital raising, particularly the challenge of ensuring compliance with the Corporations Act.
One approach to sourcing seed capital is via the Australian Small Scale Offerings Board. This is a capital raising option which is relatively simple, inexpensive, fast and compliant – compared to the alternatives. Australian companies can use ASSOB to access equity capital using strategies previously only used by companies listed on a stock exchange.
As an ASSOB Sponsor we can facilitate:
- Capital raising of up to $5,000,000 per year for unlisted companies.
- Guidance and assistance with creation of the listing application, structuring of the capital raising offer, preparation of the appropriate compliant documentation, marketing the offer, negotiation with potential investors of venture capital or equity financing, and administration of the whole process to ensure compliance with ASIC rules and the Corporations Act.
- Business mentoring to ensure that the owners, directors, management and the business itself is ready to be presented to investors.
- Access to a highly attractive vehicle for owners of established businesses who want to be able to realise some of the value of their assets by selling part or all of their shareholdings.
Contact us today to find out more, or fill out our Capital Raising Scenario Form and email it to us for a free Capital Raising Analysis.
