Capital Raising Resources

We provide below useful links, resources, definitions and information to assist with your capital raising journey.

Useful Links

Australian Securities and Investments Commission (ASIC)

Australian Small Scale Offerings Board (ASSOB)

AusIndustry – Building Business Powering Productivity

Australian Anthill where ideas and business meet

Equity, Capital and Finance - Answers and Definitions

20/12 rule allows companies raising capital to have 20 retail investors every rolling 12 months.  There are specific rules around capital raising so it is important to get the right advice

ASSOB is the Small Scale Offerings Board

ASSOB Sponsor is a business advisor that guides a company through the ASSOB requirements for admission and listing and works with the company to assist in raising capital. We are an authorised ASSOB Sponsor.

Banking is the provision of financial services and investment by a licensed institution.

Business finance refers to funding and capital that is used to create, sustain and grow a business.  Sources of funding are many and varied but generally involve debt or equity funding.

Cash flow is the monitoring and forecasting of cash "flows" in and out of a business, to enable proper analysis of the businesses financials and commitments.

Corporate finance refers to the recording and analysing of financial flows (profit and loss, balance sheet, cash flow) and making financial decisions relating to the business ie. how to fund the business, when to pay dividends etc.

A corporation is used to describe an "incorporated company" or public company.  The use of the term may also include "Government Owned Corporations".

Corporations Act The Commonwealth legislation that governs corporations and financial products and services in Australia.

A convertible note is a debt and equity instrument that allows the holder to convert into shares at a future time at an agreed strike price.  Usually the note is defined by a "coupon rate", the interest rate the company must pay, the term of the note and the strike price to convert into shares.  It is considered a safer way of investing rather than straight equity investing because if the underlying shares are not performing, the holder usually does not convert into shares and the note is repaid limiting "downside risk".

Crowdfunding refers to the collective efforts of individuals to support or fund via pledging or raising equity, a worthy cause or company.  Crowdfunding also refers to crowd financing eg. Micro lending or equity crowdfunding eg ASSOB

EBIT - Earnings before interest and tax.

EBITDA - Earnings before interest, tax and depreciation.  This is usually seen a measure of what management in the company can control in running of the day-to-day operations.

Equity capital or equity financing involves funding of the business via the issuing of shares for cash rather than the business taking on debt. Selling equity is an alternative to raising debt funding and generally is used by fast growing businesses (eg. technology companies).

How to buy stocks?  Shares of companies can be purchased for cash and the shareholder receives a share certificate (or an electronic notice) and is recorded in the share registry of the company.  There are two general markets; the unlisted market and the listed market.  Shares of unlisted companies can be purchase via directly contacting the company (see investor opportunities).  Shares in listed companies can be purchase via a broker or a stock exchange.

How to grow a business?  Usually business growth is achieved by acquiring more customers.  This can be achieved in many ways and generally involves geographic expansion, acquiring a new segment of the market eg. launching new products or services to enter new markets.

How to raise finance for a small business?  Raising finance is difficult and depends on the funding required, the strength of the business and management team. In order raise money the company needs to understand the use of funds and the financial position of the company. Businesses can be financed with either debt or equity capital or a combination thereof.  The mix of funding will depend on the company's specific circumstances the use of funds and the ability to raise debt or equity.

How to start a business?  One usually starts a business to monetise a product or service that potential customers have a need for.  You can search ASIC for a business name and register it.

A shareholder can be an individual, trust or corporation that owns the shares of a company.  Being a shareholder provides various rights like sharing in the profit of the company via dividends, or capital gain when the shares are sold.

Start-up, venture capital or seed capital is used to start an enterprise and sustain it until it can generate it's own working capital.

A Prospectus is a document issued by a Company wishing to raise capital (issuing shares for cash) from the public.

Private equity is a term describing the purchasing of shares (generally) in unlisted companies by firms specialising in this area (private equity firms).  Private equity firms generally look for high returns given the higher risk of investing in the unlisted space.

Venture Capital is capital used to fund start-up, early stage or fast growing companies.

Working capital are the monies used for the day-to-day operation of the company.  A company must have enough working capital in order for it to remain solvent ie. it is able to pay its bills when they fall due.

Equity, Capital and Finance Downloads

Capital Raising Form

Corporate Presentation

Raising Equity Capital

If you are interested in discussing funding strategies for your business or have any queries please contact us or fill out the Capital Raising Form.