Footprint Business Consulting

Often, finding venture capital investors is somewhat easier then finding angel investors. This is primarily due to the fact that venture capital firms hold themselves out as professionals that are looking to invest in small and medium sized companies. Many angel investors typically do not advertise that they make small business investments since they are simply individuals and not large corporations that are looking to become well known within the industry. As such, it is relatively easy to find these venture capital investors. Foremost, when you are seeking this type of funding you should first determine whether or not you are a good fit as it relates to your ability to provide a substantial return on investment. In many cases, these businesses are going to want to see that your company can grow at a rate of at least 30% per year if not hire. As such, if you company cannot support that type of growth then it may be in your best interest to work with a middle market funding source that will be able to provide you with the capital that you need while not requiring you sell a substantial portion of your business.

Anytime that you work with venture capital investors, you can anticipate that they are going to want to take at least a 70% controlling interest in your business. This is due to the fact that these firms need to produce very high returns on their investments for their investors. Additionally, most venture capital firms provide upwards of $5,000,000 for businesses. As such, it is extremely important that you have a rapidly growing business that can support that size of investment. If you are able to do this effectively then your chances of receiving money from a venture capital firm will increase significantly. Read more…

There are many hot sectors in the capital raising markets in Australia.

Mining and Resources: This includes a number of sectors – the first being the existing resources producers, which are seeking to raise capital from capital firms to fund for production. The capital providers include private equity firms, venture capital firms and also banks for lending.

The second sector related to mining and resources are the engineering firms and mining contractors which provide drilling and exploration activities for the miners. These companies seek capital from private equity firms and banks to finance their purchase of equipments or long term equipment leases.

Biotechnology Sector: This sector is typically serviced by venture capital firms, our research has also shown that majority of Australian firms have shown interest in investing in biotechnology sectors. Other capital providers for biotechnology in Australia include universities grants which receive R&D grants from governments. Many biotechnology venture capital funds are actually coming from universities.

Renewable Energy and Clean Tech: The most talked about sector in Australia now, and it is endorsed by the Government. The venture capitalists are now very interested in investing in this sector but may require training to understand this sector. Other capital providers include government grants, and there has been increasing number of grants now available to invest in Clean Tech applications or technologies. Additionally, major oil and gas companies are also becoming large investors into this sector. Read more…