BSI and Vicstart Launch the BSI Capital Seekers Forum
Chairman of ADI, Russ Bate, Alan Milwidsky, Minister of Innovation the honourable John Brumby, and Ivan Kaye
30 Leading Players in the Industry provided advice to innovators and entrepeneurs in Victoria. 4 Companies were awarded prizes by Minister of Innovation and Treasurer of Victoria, John Brumby to the value of $5,000 each for the best business opportunity. These prizes go towards developing their business in USA and China through BSI's gateway program sponsored by VICSTART.
Sponsors of the Capital Seekers Event - r-l
Setting the scene:- 1st Panel - The Capital and Grants Landscape - where does an entrepeneur find money
L-R Chairman ADI Russ Bate, Director of BSI Alan Milwidsky, Founder of Sausage Software and Director of Majitek Steve Outrim and Dr Colin Adams, director CSIRO and ex Director of Memtec... with Lionel Styles showing the audience how to approach their capital raising journey
Capital Seekers absorbing the knowledge of where to get capital
Ivan Kaye of ADI and Robert Crompton of Information City
Rob Smyth of Blue Reef (a serial entrepeneur who has succesfully raised capital from ADI and other investors), and Dr Noel Duncan co Founder of Fitness to Live who also raised capital from ADI and other Investors (ADI succesfully exited this investment) shared a panel with Ivan Kaye of ADI and Robert Crompton of Information City....
Main points coming out of the panel discussion was:- drivers for succesful incubatees and investee companies are:-
- good product, adequate market, great management team to stay the distance, know who the exit is
- people, people, people - make sure you have a great management team, or you have the ability to create one
- cash flow cash flow cash flow - make sure you have enough capital and sales to get you to the next stage of capital raising, and ensure you have enough cash to complete the investment cycle (from interest to investment)
- communicate, communicate, communicate with your Investors - and deliver on your promises - you WILL need more money, and the best place to find it is with existing investors.
Chris Golis, Executive Chairman, Nanyang Ventures; Michael Mak, CEO, Start Corporation; Mark Ross, CEO, 80-20 Software
Chris gave an insight to the "thrills and spills" of a VC.... being a hero on investing in a $2 stock that went to $100, only to go to 1c after the crash.... buying well is important - knowing when to exit is key.
Michael and Mark emphasised the importance of having enough money to take you to completion of a VC investment. Michael has just completed his 2nd $5m raise from a VC..... both times, the process took 10 months form wo to go..... be able to stick it out through the process.
Martin Hosking, Co-Founder, Looksmart; Dion Appel, Founder & Director, Life Lounge; Joe Barber, Senior Partner, Northgate Group
Joe encouraged lively audience debate on what it was like working with an angel.... Communication was identified as key.
Martin gave a BRILLIANT 60 second summation in the last panel on what documentation was needed to get capital - from shareholders agreements, to employment agreements, from term sheets to process and systems documentation.
Marcus Webb, Associate Director, Business Strategies International R&D; Jim Paulyshyn, Director, KJW Consultants; and Rachel Slattery of Slattery IT facilitated the Panel of Grants.
Marcus identified a myriad of grants available... key ones being R&D Tax Concession and Commercial Ready, COMET (Jim being a gatekeeper) and Export Market Development Grants (EMDG) as administered by Austrade.
Grants are definitely the cheapest source of funding (no equity and low if any interest) and al avenues should be exhausted in getting grants. Getting info together for grants is a good discipline and useful for your business. Accessing grants also provides comfort that the investor is backing something that has also been "backed" by government.
David Gold, CEO, Azure Wireless Pty Ltd; Leigh Jasper, CEO, Aconex Asia; Stuart Mclean, CEO of Netsuite and Doron Ben Meir, CEO of CAOS
Doron facilitated the panel, identifying the different ways an investor can invest and how a company shold go about choosing the right investment partner - the importance of aligning interests.
David identified the potential nightmare of having 50 high net worth investors, all with different vested interests... but make sure you are all aligned when things are not travelling well.... everything is great when things are goinelling so well!!
Leigh emphasised the importance of getting investors you can relate to, and the importance of commnicating with them on a regular basis.
Stuart identified the importance of a strategic high net worth individual who can enable and introduce you to potential "whales" and VCs through their relationships. David Shein (exited Comtech to Di Data) invested in Netreturn, brought to the table a VC (Saltbush) and facilitated an exit with MYOB.
Feng Shui and Alignment of Interests is DEFINITELY a key to a succesful venture!!
Wayne Fitzsimmons, Director, M Group; John Gwyther, Non-Executive Director, Allied Technologies; Ramin Marzbani, CEO, Infrastructure Resource Management; Jonathan Rubinsztein, Director, Red Rock Consulting
The Boys who have DONE IT!! Each panel member has succesfully exited a business. The audience were given frank advice on what you needed to do to be succesful....
If you exit right - you are a hero.... if you build a business that eventually dies or is not sold ... you get lost with the masses...
IT IS ALL ABOUT THE EXIT..... build your business WITH AN EXIT IN MIND!!!!!!!!!