If you are Australian Small Business in Start-up phase or are looking to take the next step with your business, chances are you are going to need capital to finance it.
Many people I speak to aren’t aware that there are many options available to them other than the usual bank overdraft facility or beg, borrowing and let’s hope not stealing from family!
There are alternative business financing options out there for Australian Small Businesses but before we get to them it is important to know what to expect when looking to raise capital from external investors.
The business financing process is long and drawn out with no guarantees of success. It can be stressful and owners have to come to terms with the fact that those bringing the necessary capital will have their own view of the appropriate direction of the company. Those that don’t like other people sharing their input into how their company should be run I strongly suggest they do without the capital and go it alone. There is a whole community of people like this at www.flyingsolo.com.au and there is nothing wrong with that.
Having said that there are many business financing options available to Australian Small Businesses and here are just a few:
Australian Investment Network – http://www.australianinvestmentnetwork.com
Australian Investment Network is a site connecting angel investors with Australian Small Businesses. For those that don’t know what angel investors are Wikipedia describes them as “is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.” Businesses pay a small fee to list their company on their site in the hope of attracting angel investment interest and this is refunded should there be no interest. There are over 20,000 registered angel investors on their site with over 5000 connections made each month.
Pozible – http://www.pozible.com
If you have a creative project this may be the site for you. You may be a musician, artist, designer, filmmaker etc. Pozible is a crowdfunding site, crowdfunding being, according to Wikipedia, “describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations.”
ASSOB – www.assob.com.au
ASSOB or the Australian Small Scale Offerings Board is a platform for companies seeking to raise $250K to $5m from investors. Think of ASSOB as the Stock Exchange for Australian Small Businesses. When looking to raise capital through ASSOB you will be partnered with an ASSOB accredited sponsor who will guide you through the process of submitting your application to list on ASSOB, the preparation of an investor offer document and the promotion of your offer to the broader investment community. Your sponsor will also help you look for people within your own network that may like to invest. After all if nobody in your own network wants to invest with you then who else is going to want to!
Pollenizer – http://www.pollenizer.com
If your business is web-based and you are looking for expertise in growing your business along with the capital itself then Pollenizer might be the site for you. To get the opportunity to attend one of their Start-up Bootcamps you need to meet the following criteria:
- Your business is web based – i.e. not e-commerce or e-tailing.
- You are at the concept stage – i.e. you haven’t developed or launched yet. Preferred but can make it through if exceptional.
- You are the founder – the person who will drive the business and lead.
- You want a partnership with Pollenizer, offering equity share (the amount is dependent on a number of factors), as well as remunerating Pollenizer for services completed.
- You are based in Australia. Sydney is preferred but can be others if exceptional.
- You are not afraid to share your ideas and let them evolve.
If your business meets this criteria then Pollenizer might be the business financing option for you.
Seed Accelerator – http://www.seedaccelerator.com
If you are a technology business in the Asia-Pacific region then Seed Accelerator might be well worth a look.
Seed Accelerator have 5 services:
Startup Seed Program: for start-ups with only an idea or a prototype.
Business Seed Program: for early-stage and later-stage tech ventures.
Idea Seed Program: for exceptional entrepreneurs and teams of founders without a unique business idea.
Innovation Seed Program: to accelerate innovation for medium-sized and large enterprise organisations.
Consulting Services: to provide practical advice and support to startups, tech ventures, enterprise organisations and investors.
So depending on what type of business financing you are looking for there a 5 resources available to you. There literally hundreds though if you take the time to look. Perhaps you know of others? If so share your experiences in the comments section!