by paulniederer on October 13, 2011
Reading Bob Gottliebsen’s article on investing in shares in Business Spectator should have got you thinking.
To an investor what does”Investing Productively” mean?
Bob picked up the theme of my talk based on a blog post on capitalunderdogs which was that investing by individuals today is predominantly driven by charts, numbers, spreadsheets and stock picking software but he went further and likened it to a casino.
“Investing Productively” can mean many things but in the context of an investors money being put to good use it means that the money an investor invests …
- Creates jobs
- Grows businesses
- Fosters innovation
Investors invest or re-invest $1.3 trillion a year on shares listed on the
Australian Stock Exchange (ASX) however only around $63 billion is invested productively (IPO’s and secondary raisings). Meaning investment that goes directly into an entity that uses the capital to …
- Creates jobs
- Grows businesses
- Fosters innovation
At present this $63 Billion only represents 4.7% of all the funds invested. In the “good old days” if you wanted to say build the Princess Theatre in
Melbourne you would raise the funds by issuing shares. The investors would be investing their money in a project that …
- Creates jobs
- Grows businesses
- Fosters innovation
Today an investors funds are more likely to be passed to another investor who has chosen to sell out of a stock or share and invest in another.
If an investor invests in stocks or shares for a company raising investment via ASSOB, Wholesale Investor, AIN, Angels Networks and Private Equity and Venture Capital firms, 100 percent of the funds invested go into the entity raising capital.
While these organisations and affiliations continue to primarily reinforce the opportunity that shares and stocks were originally issued for this is not so for the majority of shares transacted through stock exchanges.As Bob said ”For the last century or so stock exchanges have conducted that capital raising function, but these days stock exchanges have been turned into massive casino-style trading houses where capital raising is less than 5 per cent of what they do.”
Stock exchanges need to re-evaluate their place in the business development value chain as with the way the Internet has changed the paradigms for industries that were “going to last forever” they may find the need for their services in the future being grouped and legislated within the category of gambling and speculation.
Stock exchanges evolved due to the inability to easily connect investors that wanted to buy or sell. Same with 78′s, LP’s, CD’s and DVD’s. People needed to physically visit an outlet to obtain there latest release. Not any more. Music aficionados can now buy direct from the artist.
by paulniederer on October 9, 2011
Friday morning there were around 100 investors that fronted up for the ASSOB Breakfast Pitch Event in Melbourne to listen to nine companies that were raising capital.
There are still two events left in the series.
One in Brisbane.
One in Sydney.
There is a good article about the event in the Business Spectator. Thanks to Bob Gottliebsen.
The main message was that when you invest via the ASSOB Capital Raising Platform 100% of the funds raised go into the entity raising funds so that they can employ staff, grow their business and create new products. With ASX listed companies only 4.7% of the funds investors purchase shares with each year end up in being used for productive purposes like employing staff, growing their business and create new products.
In the “good old days” if a railway was needed investors invested directly into the railway project. With ASSOB listing this approach lives on for SME’s looking to raise between $300,000 and $5 million.
It was refreshing to see nine companies pitch their investment opportunity to investors and get the opportunity afterwards to talk to the companies they were interested in to see if there was any common ground. Each company had around 5 to 10 powerpoint slides that they used for their pitch that followed the following basic format …
- INTRODUCTION SLIDE to Introduce Yourself, your Company and your Big Idea.
- PROBLEM SLIDE or what they are solving and the prize for those you choose to be involved in the journey. Describe the pain the product or service alleviates. Reading it should get people nodding and saying … wow … I could be interested in a solution for this.
- GENERIC SOLUTION SLIDE or how competitors are solving at the moment and who the competition is.
- SOLUTION SLIDE and how it works. Explain how the solution alleviates the pain. Make sure your value proposition is clearly articulated.
- MAGIC SLIDE which clearly communicates the unique selling or value proposition. What is the magic in this solution?
- STATUS SLIDE covering Project Status / Milestones Summary / Marketing and Sales Strategies – to give context and put the investors feet on the ground. How will you reach your customers and what are your leverage points?
- TEAM SLIDE name the management team and the contribution they make – very briefly!
- PROJECTIONS SLIDE covering projections ,sales to date, profits, customer growth and whatever else they have
- TIMELINE SLIDE with funds required including scarcity and time constraint with rounds and red squares (with the sponsors input)
- ACTION SLIDE with how to contact you and follow the matter on ASSOB
by paulniederer on October 9, 2011
Image via Wikipedia
Had a glance at the Apple product timeline and on reflection Apple products have been a big part of my life.
Apple computer products owned
1979 – NZ – Apple II- used for VISICALC (first spreadsheet) and games sold to Hamilton Jet family
1985 – SING – Apple IIc Plus – Mostly used for games
1989 – SWE – Apple SE/30 – Stopped off in California and bought on way to Sweden – Used for accounting, Compuserve and AOL.
1992 – SWE – PowerBook Duo 210 – Mostly used for Accounting software as well as Mosaic then Netscape the forst WWW browsers.
2003 – AUS – PowerBook G4 Aluminium (17″) – Used for everything including seminars etc through data projectors (still going strong! – PowerPC)
2007 – AUS – iMac (Intel-based) 24 inch 2.0 GHz (T7300) Intel Core 2 Duo (still going strong) – Dwsktopm used for day to day work
2009 – AUS – MacBook Pro (Unibody) 15″ – Used for portable computing (still going strong) – used when travelling but retired
2010 – AUS – Apple iPad (Wi-Fi) (still going strong) – used to read books
2011 – AUS – MacBookAir 4,2 (13″) 256 GB 1x Thunderbolt port (still going strong) – used when travelling and is an awesome computer
by paulniederer on August 21, 2011
If any of you have attended my capital raising seminars over the years you will have experienced the strong shift towards obtaining investors through people discovered during “Discovery Sessions”.
Discovery sessions are intensive sessions where followers of the business, founders or technology can be uncovered. Crowdfunding is leading the way here and in effect ASSOB Capital Raisings are successfully because they gather, engage and count followers of the business, founders or technology very successfully.
Read more here: Followers: Raising Capital of $1.5m through 304 followers worth $4804
While some businesses seeking funds get a lucky break and one investor may take out the first round of say $300,000 in one go normally it is a more measured process. Usually it is friends, fans and followers of the business that take the first few parcels, then as time goes on the more professional investors enter the fray.
by paulniederer on April 4, 2011
Loved this article from StartupSmart
That fringe moment at the end of each meeting. Maybe as you open the car door to go. “Look I’ll get back to you” they say…. but “You should really meet X”.
Recognising that signal is worth gold!
OK so maybe they feel guilty that they cant invest in your business. You are probably best to swallow and mumble “Some will, Some won’t, So what” (then amplify your hearing and wait). That fringe comment, usually coming from guilt, as you say your goodbyes, could lead to your next investor.
“Look I’ll get back to you” they say…. but “You should really meet X”.
Thats why I like this article, it has chosen a moment most people miss. Uncovering these moments is an integral part of every ASSOB “Discovery Session”.
by paulniederer on March 8, 2011
Today’s startups look to …
- have a shorter life
- require less funds than previously
- be more transparent with google, as past and future stakeholders can be checked out
- have found that private equity from platforms like ASSOB and Angelsoft are often a better match than venture capitalists
- will have more rather than fewer individual investors.
More details on startups at the Capital Underdogs blog.
Where you can learn that Startups have:
- More chance of being swallowed up.
- require Less Cash.
- a transparent past.
- to appreciate that size matters.
- and are investor ready.
- looking for more investors.
by paulniederer on February 20, 2011
Image by OZinOH via Flickr
Spent a few days last week at the Australian Angel’s annual conference In Newcastle City Hall, NSW Australia.
It was inspiring to be among some many people that really care about early stage companies requiring funding.
Also they are networked worldwide and share deals, contacts and expertise. It showed that no matter what country attendees were from similar problems and opportunities exist worldwide.
One powerful role “Angels” provide is that of mentorship. They are often actively involved in the growth phases of the business.
If a business doesnt have strong mentors then it may not have the capabilities to succeed.
I’ve written a blog post about this over at Capital Underdogs.
Enjoy!
by paulniederer on January 23, 2011
In April 2010 I tried an experiment for a week working from a place called Huay Yang in Thailand.
With wireless internet, Skype and the occasional mobile call it worked perfectly. That set the stage for a larger endeavour. Heading off to Thailand for a month at Xmas time with the last two weeks being working weeks. That is from the 10th to the 21st of January.
Set up was an iPad for web work and the occassional email from out on the verandah, a Thai mobile SIM card in a cheap mobile, a MacBook Pro with a cloned copy of my office hard drive, my iPhone with roaming turned off but SMS still receiving and a Polycom Skype Communicator.
Working virtually from Huay Yang or Huai Yang worked briliantly and for those wanting to do so you are welcome to contact me or take advantage of the info below.
Firstly … Where is it. About 5 hours south of Bangkok by taxi
[click to continue…]
by paulniederer on December 4, 2010
Image via Wikipedia
This week I shared the stage with the Green Leader Bob Brown at the 10th Australian Sustainability Awards.
Ethical Investment was why everyone was there apart from the excellent menu which featured organically grown fare.
Paddy Manning a journalist with the Sydney Morning Herald reported well on it, picking up on my phrase “It takes passion to invest”. Read the Article here.
Or read my full blog post here.
by paulniederer on November 4, 2010
Reading Bob Gottliebsen’s article on investing in shares in Business Spectator should have got you thinking.
Fringe moments
by paulniederer on April 4, 2011
Loved this article from StartupSmart
Six degrees of investor separation
That fringe moment at the end of each meeting. Maybe as you open the car door to go. “Look I’ll get back to you” they say…. but “You should really meet X”.
Recognising that signal is worth gold!
OK so maybe they feel guilty that they cant invest in your business. You are probably best to swallow and mumble “Some will, Some won’t, So what” (then amplify your hearing and wait). That fringe comment, usually coming from guilt, as you say your goodbyes, could lead to your next investor.
“Look I’ll get back to you” they say…. but “You should really meet X”.
Thats why I like this article, it has chosen a moment most people miss. Uncovering these moments is an integral part of every ASSOB “Discovery Session”.