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EMDG Grant

The Export Market Development Grant supports companies looking to grow overseas opportunities. It provides a reimbursement of up to 50% of selected expenditure categories related to investigating and commercialising overseas markets. It is administered by Austrade and companies make an annual application. The window for applications is 5 months from the end of the financial …

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Cap table

The cap table is the list of shareholders or equity owners for a company, and how much each of them owns. It’s a vital element of negotiation with investors as it determines who will own what once the investment has been realised. As more shares are issued (to new investors), %age ownership of the company …

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Crowd Funding

Crowd funding is a method of raising capital from a large number of relatively small contributions and at the same time raising brand awareness from the target market. Investors are usually consumers and can be sourced globally. There are two types of crowd funding: The more simple of the two is the reward based model …

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Angels

Angel Investors tend to invest in companies in the early stages of the lifecycle of a company when the high risk is offset by the potential high return. They are typically high net worth individuals investing their own money and have often come from a founder/entrepreneur background and use that experience to evaluate the companies …

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Venture Capital (VC’s)

Venture Capital firms create funds which are then used to invest in a portfolio of companies. Each fund will have a size (in dollars) and a duration (in years) after which it is expected that the fund will return to its contributors, a return on the investments it has made. VC’s expect that many of …

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The small scale 20/12/2 rule

Investing in early-stage private businesses carries a significant risk. Professional Investors and Sophisticated Investors are expected to be aware of the risks and to have the experience and capability to assess them and make informed decisions, but there is legislation (Chapter 6D of the Corporations Act 2001) to protect the less sophisticated investors. Unless a …

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The Ask

Simply put – how much do you need, what will you be doing with it and what are you offering in return. It’s the point in each “Shark Tank” presentation where all the sharks grab their notebooks. Be realistic and be prepared to negotiate. The more detail you can show on how the investment will …

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Unforeseen circumstances

How can you predict the unpredictable? Well obviously you can’t, but you can build flexibility into a plan to cope with changes in circumstances that have different impacts is something that can be done as a mitigation measure. To know that things will go wrong unpredictable and uncontrollably is a fact of running a business, …

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Target Market

Describing the target market is most commonly broken down into: Total Available Market (TAM) – how many customers have the problem that you are solving, or how much money is being spent to solve the problem. Serviceable Available Market (SAM) – What is the proportion of the market which is accessible to you (for example …

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Sophisticated Investors

A “sophisticated investor” is defined as a person who has net assets of at least $2.5 million or has a gross income of at least $250,000 per annum for the last two financial years. The assets or income must be certified by a qualified accountant within the last 6 months. If an investor is investing …

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