- Venture capital (VC) funding from domestic investors in Australia rose to A$568m in FY15/16.
- Businesses and entrepreneurs need to think strategically if they want to succeed in securing VC funding.
- Episode two of the Acuity podcast discusses VC funding with AVCAL CEO Yasser El-Ansary.
Recent findings from the Australian Private Equity & Venture Capital Association Limited (AVCAL) suggest there’s been a significant improvement in confidence amongst investors.
AVCAL’s 2016 Yearbook report, published in November 2016, shows that venture capital (VC) funding from domestic investors in Australia rose to A$568m in FY15/16, the highest recorded level in the past ten years.
The bulk of investments have come from superannuation funds, corporate investors and private individuals. Seven venture capital funds had successful fundraising closes in FY15/16, including Blackbird Ventures’ A$200m fund and OneVentures’ Innovation and Growth Fund II, which reached its A$100m target.
The interest in the information and communication technologies (ICT) sector of the Australian economy can spearhead a pathway for small and medium-sized enterprises (SMEs) who want a share in the estimated A$7b available.
Fintech favoured by VCs
AVCAL’s report highlights that fintech companies secured A$45m of VC funding in FY15/16. With investor confidence returning, opportunistic SMEs, entrepreneurs and starts-ups in the ICT sector can be bullish about securing VC funding in 2017.
For entrepreneurs, SMEs and start-ups seeking VC funding, it’s important to understand how to best pitch to investors. Think about what professional context you’d prefer to work within and what type of individual you would feel comfortably bringing on board.
Creating successful, enduring relationships can make or break your enterprise, so it is important to choose a VC partner that compliments what your business brings to the table.
Acuity podcast discusses VC with AVCAL
In the most recent episode of the Acuity podcast (above), host Mike Lynch chats with AVCAL CEO Yasser El-Ansary about how to successfully secure VC funding. El-Ansary says being pitch ready means you have done your homework.
“Knuckle down and do the hard work around defining the product, the proposal – around the offering in the market,” he says. “Define what it is you are delivering to consumers, or to other businesses if it is a B2B offering. Be really clear about that.”
For more on how to succeed in securing venture capital, listen to episode two of the Acuity podcast above. The Acuity podcast is available to stream and download at acuitypodcast.com. Every month, the free Acuity podcast tackles the latest issues in economics, business and finance. Subscribe to the Acuity podcast now to receive new episodes of the podcast directly via your chosen channel.