Access to Capital

Well I cant believe its been so long since I posted an article on the site. We are still getting heaps of enquiry, questions and feedback so please keep it coming. In response to some of that enquiry I have posted another web site that is managed by the Federal Govt and it is called www.ipaustralia.gov.au .

There are a lot of questions that we field about Intellectual Property and how best to protect it so please go and have a visit to this site and start the learning curve.

So what have we been up to? Well we have recently completed two successful Round 1 Capital Raisings for two new business start-ups and both of these businesses are now moving ahead into Round 2 and beyond. Today’s article is a result of something that happened during the activities surrounding those Capital Raising projects.

On more than one occasion the process and valuation base of the Offer that was being marketed by the Business Owners was questioned by the supposed Professionals. Statements like: “Oh I don’t think you are doing it right” and “There is no way you will get people to invest based on your offer” and “How can you justify the pricing of your business model” etc etc. I was completely stunned and realized that given the supposed professional advice being dished out, is it any wonder that we still end up taking much of our Intellectual Property overseas to be Commercialised only to import it back into Australia.

The fact is; that contrary to the professional advice provided both of these businesses went into the market and between them raised over half a million dollars in just over two months and are on their way to another half a million dollars in the coming weeks.

Let’s get something straight. There is no right way or wrong way to raise capital! There is legally compliant ways and there are illegal ways and the Corporations Act 2001 and ASIC exist to ensure that fund raising is a legally compliant process that minimizes risks to the individual investor.

So long as you are compliant with the law then the only body that exists to define whether or not you are “Doing it Right” is: THE MARKET. Yes we actually live in a market driven economy and I want everyone to right this down so you can recall it when confronted by the doomsayers, the bureaucrats and the suits in their ivory towers: THE ONLY TRUE MARKETING GENIUS IS THE MARKET ITSELF. Thank you to Alan Stewart, one of the most outstanding marketers I have ever met for drumming that statement into me as a mentor to a student should.
 
By all means get good advice and ensure that your T’s are crossed and your I’s are dotted. Consider your long term strategy and consider the realistic value of your business opportunity. But truly there is only one final decision maker and that is out there in the market place. If you cannot convince the market that your business has the potential and underpins the value that you are suggesting then the response will be simple: NO ONE WILL INVEST. This is called true market research.

If this occurs then you must listen to the market and if it is aligned with other advice then it might in fact be the right advice. But beware the lazy opinion. Every one has an opinion and some people have more than one on any given subject. Facts are market based. If you are too stubborn to listen to the market then you have no business being out there trying to raise capital. But do the research, find out if it has legs and then go and plan accordingly.

Failure to listen to the market will result in your peril. Taking heed of so called Professional Opinions before going to the market can be equally perilous.

Good Luck and Best Wishes

Andrew @

Access To Capital

Andrew Winter is an Experienced Business Development Consultant specialising in helping companies grow through establishing and implementing sound capital raising strategies.

AccessToCapital has a range of experts available in Capital Raising and Business Development to assist growing businesses.