Capital raising advice - Silicon Beach Australia

Message from discussion Capital raising advice
MIME-Version: 1.0
Date: Tue, 30 Jun 2009 14:16:36 -0700 (PDT)
In-Reply-To: <ca8af9d90906300111y6300e7d7vcb481828338ca618@mail.gmail.com>
References: <620a9aad0906290104w7b35d983v395319779eb4ea7b@mail.gmail.com> 
	<ca8af9d90906300111y6300e7d7vcb481828338ca618@mail.gmail.com>
User-Agent: G2/1.0
Message-ID: <ce13ccdd-3dee-43bc-8cc6-9aff686612d6@q11g2000yqi.googlegroups.com>
Subject: Re: Capital raising advice
From: DeanMcEvoy <d...@bookingangel.com>
To: Silicon Beach Australia <silicon-beach-australia@googlegroups.com>
Content-Type: text/plain; charset=ISO-8859-1
Content-Transfer-Encoding: quoted-printable

My first bit of advice is dont do it. If you havent raised money
before or someone who is part of your  company (ie has skin in the
game) then it will be long and painful process. If you have revenues
it makes it easier. Dont even think about if you dont have a product
yet.

First ask yourself what you really need, what are you raising the
money for? Then try and think of creative ways to partner. Bring the
skills in house and offer them equity or deferred fees or whatever.
There is always a way. Bring in an adviser who knows your business and
has raised money and give them a % of your business.

Its very rare that someone else will be able to raise the money for
you.YOU need to network yourself around because nobody sells the
passion like you and thats what the investors want to see YOU need to
understand your business, the market, the problem, the go to market
strategy etc etc. Look at companies in your space and find out who
invested in them, try and get an introduction, look at people who have
made money in your industry and approach them. go to networking
nights, go where rich folks hang out, marry a rich girl or guy ;-)

Capital raising is a shit job, but paying someone else to do it IMHO
is a waste of money. Just think about what you would have to do for
you business to have them knocking on your door and find creative ways
to do it.

If you are in technology and really serious about it move to Silicon
Valley. You will learn more in 3 months here than 3 years in
Australia.

Cheers

Dean


On Jun 30, 1:11=A0am, Mat French <mat.fre...@gmail.com> wrote:
> Hi,
>
> I am going through this process and am a fair way down the track. You nee=
d
> to engage someone or an organisation with good rep. A business or individ=
ual
> who has existing contacts who have money ready to go. I know this sounds
> like common sense, though I also understand how necessity gets in the way=
 of
> thinking with the left part of the brain/cost etc.
>
> If going down the IM route, be careful how you structure costing etc. If =
you
> are signing someone and reducing cost of production through offering equi=
ty,
> make sure you put specific performance dates and criteria in your agreeme=
nt.
> Let me tell you, you will know if someone is good or not in the first 3-4
> weeks. If you have doubts in that time, it is usually not going to get
> better.
>
> Like sales/marketing, it's about profiling. Who is going to be most
> interested in your proposition and why? Experience, Portfolio, Capital
> amount, Dumb Investor, Sophisticated Investor?
>
> I have someone who I can recommend whom is very experienced and has good
> contacts. He is quality.
>
> If anyone wants an intro, let me know. Please provide brief outline of
> business.
>
> Hope this helps in some way.
>
> On Mon, Jun 29, 2009 at 6:04 PM, Matthieu Stone <matthieu.st...@gmail.com=
>wrote:
>
>
>
> > Hi there,
>
> > I'm working for some entrepreneurs who are looking for independent capi=
tal
> > raising advice.
>
> > We have two differing options from experienced parties - one a Retail
> > raising & the other a Memorandum of Offer.
>
> > It would be great if we could meet up with some experienced in the
> > Australian capital raising market and discuss the pro's & con's of each
> > offer type.
>
> > Can anyone provide a recommendation or is available for such?
>
> > rgds,
> > - matt.
>
> --
> Regards,
>