ASSOB is an exclusive membership based platform for businesses to raise capital from private equity sources, utilising equity financing as a viable alternative to venture capital or debt funding. Companies can raise capital in amounts up to $5 million per annum on ASSOB without incurring the time and financial cost of preparing a full disclosure document. ASSOB focuses on matching investment opportunities with private equity investors. Investors and founders can sell their shares on a secondary market run by ASSOB. The ASSOB platform has proved to be extremely successful in raising capital since its inception in 1997.

ASSOB is not a new untried venture, or a fly-by-night shady scheme for private equity financing, it is a well-established and proven organisation. ASSOB is Australia’s largest and most successful capital raising platform for showcasing investment opportunities in high-growth, unlisted companies requiring seed capital to reach their potential:

• Over $100 million has been raised by ASSOB and over 200 companies have been successfully listed on ASSOB
• Current market capitalisation (based on last share sales) of companies listed on ASSOB is over $500 million
• ASSOB can provide a pathway to a listing on the stock exchange – an example is a mining company which listed on ASSOB, initially at 8c per share. The company then used the funds raised via ASSOB to undertake an IPO at 20c, and first day trading on the ASX reached 30c per share
• Over 14,000 potential investors are registered with ASSOB

Although there are no guarantees in the capital raising business, ASSOB’s intellectual property provides a process and a pathway that works for Australian companies seeking seed capital, and increases the chances of finding private equity funds for startup or expansion.

You normally only get one good shot at capital raising, and if you blow it that can mean the end of your dreams. So we think the best approach is to invest some time, effort and money into preparing your venture so that it can be displayed in the best possible light. If you aren’t prepared to invest in preparing to sell your idea to investors, then why are you investing in your business at all?

Think of it as a first date with the private equity investors. If you want it to succeed then you need to make the effort to dress up and make a great first impression.

With this in mind, here are some tips to help you to get ready to display your wares to investors. These are the kinds of things you will need to cover:

• Products, particularly the unique attributes and differentiation
• Target markets
• Competitors
• Sales approaches
• Operations
• Resource requirements
• Management
• Financials
• Timelines
• Risks
• The vehicle – types of commercial structures
• Funding options

And the activities you can undertake can include some or all of these:

• Reviewing your existing written material
• Reviewing your operations
• Write business plans and investor offer documents
• Develop investor presentations

This is your business and you are the expert, however we can run a fresh pair of eyes over your business. We are totally focused on seeing things from the investor’s perspective. We will put together a professional offer document and design your investor presentations. Click here to contact us and make further enquiries.

Recent headlines: Banks too scared to lend to business!  Banks apply tougher lending standards and higher interest rates to smaller companies!  Business cash-flow lending replaced by mortgage-backed lending!

Prior to the onset of the global financial crisis, banks were falling over themselves to lend to business. Now they want investigating accountant’s reports, tougher covenants and charge much higher risk premiums.

Today, small and medium-sized businesses are bearing the brunt of tighter credit. They are paying higher interest rates and being shut out of obtaining working capital for new ventures despite the improving economic outlook. Banks are charging smaller businesses almost double the margin the large businesses pay over the official cash rate, and well over double the margin charged to home borrowers.

Debt funding for many businesses is now completely out of contention.

Now is a good time for directors to consider strengthening their balance sheet by raising equity capital.

If you need funding to develop or expand your business, forget the banks, contact us today.

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.

A short video from ASSOB which tracks the path of a small business capital raising which was so successful over one million dollars had to be sent back to investors. It was oversubscribed! If you are seeking capital for your business give us a call and we can help guide you through the ASSOB process. Who knows… it could be this easy for you too!

When have you needed money before?

Think back to when you were a kid and you needed money. First you worked out how much you needed. Then you worked out who your targets were. Maybe Mum or Dad or a relation or perhaps an older brother or sister. You made a plan.

1. You worked out how much you needed
2. You made a mental list of who might help
3. Then you worked on your story and when you would tell it.

Its basically the same when raising capital but with an independent and proven Capital Raising Platform you can usually do a lot more than you could with you and your accountant, meaning …

1. You can raise more money
2. Your “list” can be larger
3. Your story can be told by other story tellers as well

However lets start with an activity you did as a kid.

Starting with a pen and paper, make a list of the people who are impressed by your business. Every good business has fans! Afterwards they often are very grateful that you thought of them as part of your company’s future.

Friends and family typically provide smaller amounts of capital on the basis of relationship rather than on the basis of financial rewards. Larger amounts though depend on many of the pointers in this article.

In addition to Friends, Family and Fans, look outside your business sphere of influence to people such as prominent identities and professionals to develop an idea of who might be interested in investing in your business.

Once you have a list of say 200 friends, family, fans, employees, customers, landlords, prominent identities and professionals, categorise them. The majority of funds raised in early stage funding comes from these categories. There needs to be a fit between them and your funding requirements. By now your advisors should have agreed with you the amount of capital you need to raise. Note beside each name the size of share parcel they could possibly take. Start at $10,000 then $25,000 and over $50,000. But don’t approach them yet. A Capital Raising Process has many steps and they must be done in the right order.

Once you know how much capital you need to raise, and you have a list of those that can help you start on this journey, the next thing you need is a credible and convincing story. Here are some definitions:

1. Capable of being believed; plausible.
2. Causing one to believe the truth of something; “a convincing story”
3. Worthy of confidence; reliable.

Words associated with a “credible and convincing” story are reliable, honest, dependable, trustworthy, sincere, trusty, believable, possible, likely, reasonable, probable, plausible, conceivable, imaginable, tenable and thinkable.

To achieve all of these a good story needs substance and it needs to be articulated well. For an early stage capital raising there are a number of things you can do to make your story more credible and convincing.  The following help!

• Gather a good Board of Directors. They strengthen the story as they are responsible for shareholder monies being invested.
• If your business is attractively valued investors will be more easily convinced. Most entrepreneurs over-value their business in the early stages. Early investors will grow the “Story” by saying “I got in early at a great price”.
• Secure your assets. Your IP should be the investors IP.
• Show proof your concept or business works through testimonials, figures or first hand experience. “Show Me The Proof”
• Make sure the business is attractive.Things to strive for.  Quality management team, attractive sector, sound and well researched business plan, strategy for delivering value growth.
• Demonstrate you have made progress to date.
• Be passionate and likeable.
• Produce credible collateral. This is also integral to the success of an offer. No point creating a convincing story if you don’t have the materials to promote it. A wealth of materials and links can be promoted through the ASSOB Capital Raising Platform. Videos though are especially powerful. ASSOB research has proven that the use of Videos delivers a 62 percent more capital rasing.
• Tell them how the story ends! Remember “Flick the little Fire Engine”? One day I’ll be big and strong and FIGHT every flame, When there is a fire, they’ll say “quick!” Call the little engine, call the little engine, call the little engine “FLICK. If you envisage a trade sale, say it. A listing on a Stock Exchange add that to the story. Every one wants to know the ending and how they will get their money back.

To prepare for story telling find a decent writer! This is essential as your story and the offer need to be presented in a compelling manner to attract potential investors. A good writer can also help prepare a few things that are essential to the capital raising process.

1. An elevator pitch, which is a well-rehearsed description of why you should invest, in language anyone can understand and be delivered in the time it takes to ride an elevator.”
2. An Investor Presentation. For the development of an investor presentation I recommend you follow the steps outlined by Guy Kawasaki in “The Art of the Start”
3. A Video script so that a convincing video can be made.

“The “Storyteller” or spokesperson presenting the offer should ideally be the company founder, nevertheless, whoever is going to present the opportunity at investor meetings needs to practice until perfect and should be able to maintain communication momentum.” This list is longer than Mum and Dad.

A good Capital Raising Platform, like the one at ASSOB can assist you through these processes to a successful capital raising. By applying the tips above, your business will be able to maintain investor interest while you and them take part in the capital raising journey.

We can take you through the steps of the ASSOB capital raising process. Contact us to find out how.