robert buhrke capital raising presentation

TABLELANDS INVESTMENT &

CAPITAL RAISING WORKSHOP

© 2015 – www.ICEBERG-Innovation.com P 1

Robert Buhrke

Business Advisor, Innovation Engineerand Capital Raising Specialist

Overview

Short Introduction + Main Topics:

1. What options exist to raise capital?

2. Pro and Contra of each option

3. How do I go about seeking investment?

+ Tips

+ Local Success Stories / Case Studies

© 2015 – www.ICEBERG-Innovation.com 2

Why raise capital?

• Limited own funds

• Prepare / enable to seize a market opportunity

• Setup, expand, grow a lot quicker

• Survive

• Enter new markets

• New Product Developmentand/or

• Commercialisation


What’s your goal?


Why listen to me?


My Experience + Track Record


• Been successful with getting

50+ grants and capital raising successes for my clients

25+ new products launched

• 1st Innovation Coach in Australia, supported by Gov. assisted well over 300 Qld-based companies

• Own business since 2006

Local Success Stories

• From idea stage to now nearly $3m investment


Successful on Shark-Tank


New innovation + private investment

Background

10

20+ years New Product Development & Innovation Engineering

What it means to you matters


Options to Raise Capital


Options


DEBT• Family, Friends and Fools

• Banks / Loans

• Overdrafts

• Commercial Line of Credits

• Investment Banks

• Leasing

Some other options:


EQUITY

Family, Friends and Fans of the Business

Private Investors / “Business Angels”

Venture Capital Firms

Private Equity Firms

Initial Public Offering (“IPO”)

Government Grants

Options Overview

• Access your own “frozen” funds- selling unused/underutilized assets- re-mortgage house

• Borrow money from the 3Fs

• Borrow money from the bank

• Get customers to pre-pay

• Private Investors: Angels, HNWIs, Professional/sophisticated investors

• VCs, Corporate/Institutional investors (commercial/non-commercial)

• Government (Grants, Incentives, Loans)


You have to payit back…

• When?

• Interest?

• All kinds of issues


Borrowing money?

What are themost-common

OPTIONS?

1. Banks

2. Government

3. Crowdfunding

4. Investors

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Option 1:

You have to• Pay interest (typically lots of)• Pay it back• have assets / security

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GrantsOption 2:

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We can help with up to $1m

Option 3: Crowdfunding

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Option 4: Private *or other* INVESTORS

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Selling Shares?


Legislation

Two types of fund raising offers:

1. Personal offers. 20/12 rule. Section 708Affordable & quick but limited to $2m & 20 retail investors per year. Requires expertise/experience + connections!

2. Offers made under disclosure(Offer Information Statement or Prospectus) Requires lawyers, accountants and advisors. => Expensive: Usually $100k or more!


Warning!

In Australia there are very strict laws that govern

CAPITAL RAISING!

• If you run a private company... (Pty Ltd)and you don’t have a Prospectus, then you are not allowed to approach the PUBLIC at all!


IMPORTANT

We can work with you to

1. Protect and guide you through the whole process

2. finalise your “new currency” (= share capital structure) and the quantity of shares to be allocated to each founder before any new investors come on board.

3. Avoid mistakes, missing out, delays, or fines

4. Prepare you for investor and grant meetings

5. Organise investor and grant-related meetings


Our Focus:


$$$ amount: $200k - $5m

Our Method

• We “mix and match” capital from multiple sources

• Capital mix and ratio depends on the situation

• Example 1: Own funds + Grants + Private Investors + Bank


PART 3: How to go about it?


Answer: It depends… (sorry)

• On how much money you need

• Your situation

• Your product, team, industry, profit potential, …

General advice is dangerous, but here a few things that are “safe” and apply in most situations!


How do I go about seeking investment?1. Understand

• yourself, your goals and your passion => What drives you? => Why?• your (current or proposed) business & it’s profit potential• your customers, market and industry – incl. problems and trends• the investment opportunities

2. Get professional help early on!Learn what and how to communicate to potential investors and/or to Government

3. Prepare & Perfect (your plan)

4. Pitch & Present (your opportunity)

5. Close the deal => Celebrate => Go for the next round!


Example: Private Investment


How it works

The bigger picture


Key Success Factors – PART 1



Key Success Factors – PART 2

Beyond the “right idea”…


???

CAPITAL (typically 200k to $5m)

other BENEFITS

• interest-free + non-repayable funds = Asset (instead of debt) on your balance sheet!

• SMART Money• Increased Credibility• We can legally advertise to

attract investors – you cannot do this yourself

• Good option to sell/exit

Access to:• Innovation Experts• Funding Strategist• Expert Lawyers• Business Advisors• Tools, Templates• Secondary Share

Sales Platform

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More than just CAPITAL

Checklist: Important things to consider Elevator Pitch

Market Opportunity

YOUR product + competitive advantage story team current status and roadmap

Financials Summary / Forecast

Investment Documents and Processes


Opportunity

• Are you selling a $ 10 product to 20 million potential customers, or a $ 10 million solution to 20 potential customers?

• Gaps in the Market

• Trends, Environment, Legislation, Barriers to Entry?


About ICEBERG Innovation


We specialise in assisting organisations and entrepreneurs in the areas of:

• Innovation

- avoid competing on price,

- creating value for customers and reducing costs

• Commercialisation of new products and services

• Capital Raising and Access to Grant Funding

(typically $200k - $5m, occasionally less or more)

Thank you!

ICEBERG Innovation

Phone: 1300 037679

Robert Buhrke Direct: 04 1764 5831

• new office in CAIRNS opening soon

• Level 36, Riparian Plaza, 71 Eagle Street, Brisbane, QLD 4000
