Equity Capital Raising | alchemyinnovation

Raising startup capital

8 Dec, 2011

by Alchemy

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Australian Small Scale Offerings Board

If you wish to raise money for small business with growth potential, it is worth checking out the capital raising platform – the Australian Small Scale Offerings Board. To list your business on the platform there are a number of steps to go through. These are:

1. Evaluating.
Using your company’s projections a capital raising scenario is developed by your sponsoring member, to establish if your business has the growth potential to attract investors.

2. Preparing
Here we build your offer document and executive summary, convert your company to public unlisted, establish a board with a minimum of 3 quality directors, establish a trust account and share registry service. Check website and company marketing collateral serve the offer, as well as create a video which represents the offer. Make sure the IP is secured. Establish business milestones. Build an attractive valuation.

3. Discovery
With your sponsor – run a discovery meeting with senior managers and board members to establish all the potential followers and advocates for the business. Potential joint venture partners, distributors, channel partners Read more →

Frequently Asked Questions equity capital raising

8 Dec, 2011

by Alchemy

1 Comments

Growing business requires risk and guts

Raising Equity Capital using the Australian Small Scale Offerings Board. This is the first of a series presented by Alchemy Equities, sponsoring members of ASSOB.

What is the vehicle that you use?
o The ASSOB system uses a Public Unlisted company structure. You can either convert your existing company to this format or create a new company and assign all of the technology and IP etc to this new company. This is mandatory to all companies to be able to use the ASSOB system.
o With this structure, companies need to have a minimum of 3 Directors. The structure is setup to fit founders inputs.
What advantages does the ASSOB model provide?
o Low cost
o Class exemptions which allow up to $5million of capital raising within a 12month period rather than standard $2million.
o Reduced risk and liability for directors.
o Access to the ASSOB investor bulletin.

What industry experience is needed?
o The model that we use for capital raising doesn’t require us to know the specifics of your industry. We rely on your experience, while we work closely with ASSOB.
o With ASSOB you are buying into a system that helps you develop a business and apply a structure to your offer. It creates a vehicle and platform for your business which is investment worthy.

What is the structure of the capital raising?
o Working with you, we will work out when you need Capital and how to structure the deal. Typically the deals are structured with $25-$30,000 parcels in 3 Rounds. The first 2 rounds are each of 10 parcels with the 3rd round focusing on exempt investors (sophisticated, overseas). Read more →

How to build credibility around your business

8 Dec, 2011

by Alchemy

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At some point your business will need resources to reach a next level. Alchemy Equities is about helping businesses get access to funding and support to make that happen.

A key element of getting access to resources is building credibility around your business, particularly if you wish to attract private equity funds.

Key strategies to build credibility when attracting private equity funds:
• Work hard.
• Balance your entrepreneurial enthusiasm with experience: Build a team with that includes people with significant experience.
• Exposure and network. Make sure who ever is on your team also has exposure and a network that helps build the business
• Create solid communication around building the credibility of the team: investors want to see a team of people who complement each other, not an individual.

So how do you create that kind of communication?

When attracting equity funds, either through angel investors, venture capital in Australia or via the platform the Small Scale Offerings Board or Wholesale Investor, how you communicate your investment offering is critical. Read more →