Frequently Asked Questions
Hopefully you will have a few questions about AuSMEquity, what it does, why, and about each of the directories.
Please do not hesitate to email your enquiries to us and we will get a response to you. However, it can often be that you are not the first to ask a question and as a result we have added, and continue to add, the most common questions and the answers here.
About AuSMEquity
Historically, and currently, Australian SME funding is 95% Debt and 5% Equity. This debt funding is mostly provided by the mainstream banks.
We have no resistance to the mainstream debt funding channels, but it does not work for every business and often some alternate form of funding may well have had greater flexibility and benefits to the business.
Alternate SME business funding and investment is a growing investment portfolio for corporations, institutional and private investors.
AuSMEquity is simply a collection of three key stakeholder directories:
Funding: for the SME opportunities;
Funders: for the financiers and investors; and
Advisers: assisting the flow of funding).
Our role is to give stakeholders profile and access to each other.
Nothing could be simpler. Each SME alternate funding stakeholder selects the directory that either gives them access to the deals they seek, or which gives them the profile they seek, they register an account and start chasing the business they need.
Yes, it is only for Australian SME alternate business funding opportunities, but it is open to any funders and advisers that assist in the flow of those funding transactions.
Equity Financing involves raising capital by selling shares of ownership in your company. Unlike traditional loans, equity investors become shareholders and share the risks and rewards of the business.
Angel Investment is a form of funding where high-net-worth individuals invest their personal funds into early-stage businesses. These investors, often entrepreneurs themselves, provide not just capital but valuable mentorship and industry connections.
Our platform acts as a facilitator, connecting SMEs with a network of potential investors. We provide a space for entrepreneurs to showcase their ventures, attracting the attention of equity investors and angel financiers looking for promising opportunities.
AuSMEquity is not an investment platform as it does not match investors to investees but merely provides a venue whereby the stakeholders can more easily find each other.
Just as clients are different so too are the benefits of platforms. There are now some excellent platforms that we do recommend, but you and your advisers need to consider which of those matching and promotional platforms are most suited to your offering.
Funding Directory
Yes. Your business must be based in Australia to seek alternate funding through AuSMEquity.
No. While we started as the Australian SME Equity funding directory there was always a great deal of demand for other types of alternate SME funding. Now AuSMEquity is open to any type of alternate SME funding.
Traditional financing may have limitations, and SMEs often seek alternatives for flexibility and growth. Equity Financing and Angel Investment offer access to funds without immediate repayment obligations, fostering long-term partnerships.
Eligibility criteria vary but typically involve having a solid business plan, growth potential, and a compelling value proposition. Investors look for businesses with innovative ideas, strong leadership, and a clear path to profitability.
We understand the financial constraints of SMEs. Our platform typically operates on a fee structure that is mutually beneficial, ensuring fair access to funding opportunities without burdening entrepreneurs.
Successful engagement involves thorough preparation. SMEs should have a well-defined business plan, clear financial projections, and a compelling pitch. Building a strong relationship with investors is key for long-term success.
Our platform caters to a diverse range of SMEs across industries. Start-ups, tech ventures, and innovative projects have found success in securing funding through our network of equity investors and angel financiers.
The timeline varies based on individual circumstances, but our goal is to expedite the process. SMEs can expect to connect with potential investors efficiently, with the actual funding timeline contingent on negotiations and due diligence.
Begin by creating a comprehensive profile on our platform, highlighting your business’s strengths and growth potential. Once your profile is live, our team will work to connect you with suitable investors, initiating your journey toward securing the right funding for your SME.
The Funding Directory at AuSMEquity plays a pivotal role in facilitating access to alternate funding for Australian SMEs. They guide businesses through the funding process, connecting them with suitable investors and resources.
SMEs can leverage the Funding Directory to navigate the funding landscape effectively. These professionals provide strategic advice, assist in crafting compelling pitches, and facilitate connections with potential investors.
Listed advisers have diverse expertise, covering a wide range of industries. Whether your SME operates in technology, manufacturing, or services, or you fund and invest in those areas, one of our listed advisers is equipped to assist in securing funding tailored to your specific needs.
Advisers are in the business of providing advice, so we would expect so, but that is a conversation you need to have with them.
SMEs can initiate the connection process by reaching out directly to that funder through our platform. Simply express your interest and they will contact you.
SMEs can initiate the connection process by reaching out directly to that adviser through our platform. Simply express your interest and they will contact you.
The Australian federal government has programs to encourage more Australian SME funding. One of these programs allows the funder to receive complete tax exemption on qualifying SME investment. SMVCF Certified means that offering has been assessed and determined to qualify as being capable as a Self Managed Venture Capital Fund investment, gaining the government’s tax incentives.
The timeline varies based on the complexity of the funding requirements and negotiations.
A distinct advantage we do offer our clients, on behalf of their potential investors, is assessment of the tax incentivised investment benefits of their offering. We now offer full pre-qualification as a tax exempt investment and full SMVCF Certification, giving the Issuer marketing advantage over their competition and strengthening the investment proposition.
AuSMEquity’s role is to provide the venue for SME alternate funding stakeholders to find and easily transact with each other. Part of this facilitation benefit is our relationship to the venture capital manager Purpose Driven Capital.
Purpose Driven Capital, as Queensland’s oldest registered venture capital management partnership, manages venture capital funds. Lellco operates as a feeder into those funds by administering the Self Managed VC Fund service.
However, Self Managed VC Funds are only a small component of SME Equity funding and we still work in compliment with many other venture capital managers.
Feel free to reach out if you have any additional questions or if you would like more information tailored to your specific needs.
Funders Directory
No, any funder willing to provide funding to Australian SMEs may be listed on the Funders Directory.
While there is a free listing this provides minimum details. A more useful listing includes a much better range of details about the funder and does have a cost for the listing.
Funders are not charities, they are in the business and activity of providing funding so as to make a return (income) on that funding. it is a business listing and therefore appropriately carries a fee.
You will find that all AuSMEquity directories are business directories for the purpose of conducting business and therefore all carry a fee for their full detail listings.
Listed advisers have diverse expertise, covering a wide range of industries. Whether your SME operates in technology, manufacturing, or services, or you fund and invest in those areas, one of our listed advisers is equipped to assist in securing funding tailored to your specific needs.
Advisers are in the business of providing advice, so we would expect so, but that is a conversation you need to have with them.
Initiate the connection process by reaching out directly to that party through our platform. Simply express your interest and they will contact you.
Feel free to reach out if you have any additional questions or if you would like more information tailored to your specific needs.
Advisers Directory
Because AuSMEquity is Australia’s best and lowest cost directory for SMEs to seek and find alternate business funding, i.e. it is where the SMEs and funders that want to buy your services are looking for deals.
No, any adviser willing to provide funding relevant assistance to Australian SMEs or the funders of those SMEs, may be listed on the Advisers Directory.
Only those services relevant to either SMEs seeking alternate business funding, or the funders and investors providing that funding.
While there is a free listing this provides minimum details. A more useful listing includes a much better range of details about the funder and does have a cost for the listing.
Advisers are not charities, they are in the business and activity of providing advice so as to make a return (income) on that advice. it is a business listing and therefore appropriately carries a fee.
You will find that all AuSMEquity directories are business directories for the purpose of conducting business and therefore all carry a fee for their full detail listings.
Immigration agents that deal with investor visa applicants will find it very useful to have a business listing on the adviser directory because $500M a year of compulsory VCPE investment forms a significant slice of alternate business funding and AuSMEquity is geared with investor visa applicants in mind. So AuSMEquity is where your next client may be looking right now.
Initiate the connection process by reaching out directly to that party through our platform. Simply express your interest and they will contact you.
Yes, advisers are available to provide ongoing support and guidance. Their commitment extends beyond securing funding, aiming to foster long-term relationships and contribute to the sustained growth of Australian SMEs.
Feel free to reach out if you have any additional questions or if you would like more information tailored to your specific needs.