Welcome to the February 2023 edition of the Funding Strategies newsletter!
From Mark's desk
"I recently had the opportunity to attend the Growth Capital Forum and meet with other investors in Sydney. Some of the take outs for me were:
Many parts of the world are already in recession due to energy shocks and the war in Ukraine;
The economy is in for a bumpy ride – inflation is “sticky” and may remain higher for longer;
Geopolitical risks are rising and business conditions are worsening (consumer confidence historically low);
Queensland to do well due to net migration increases;
Many venture company valuations are too high and venture funds are not investing at those valuations – the advice is to do a “down round” if needed ie. don’t put the company at risk; “an overpriced round does not do anyone any favours”
Some investors are pivoting to debt rather than investing equity;
The “market environment” has dramatically worsened in the last 6 months and companies need to understand these changed conditions;
Investors are looking for good businesses with a growth plan / pathways, capable management that can demonstrate good investor returns in industries with “tail winds”
Good people to run growth businesses are hard to find;
Getting good advice is important if the business needs debt restructuring;
Money is available for good opportunities.
If you would like to discuss your particular company or investment situation please contact us."
This edition of our newsletter includes:
Product of the Month: Debt Financing;
Introductions: Project FSM, Project BNPL, Project Melody;
Client Updates: Project Home, Family Harmony Project, Project Gold, Project Brewing, Project Triplex, Project Parking;
Upcoming events: Project Barrel webinar, ACBC;
Partner Updates: McCormick Harris.
About Funding Strategies
Funding Strategies is an Australian based capital markets firm providing venture equity capital and finance services to small business and companies seeking capital for growth and expansion in the unlisted and pre-IPO capital markets. We work with predominately private and public companies, and sophisticated investors. If you would like more information, please email email@example.com or phone +61 7 3160 2840.
Image below: Growth Capital Forum 2023