Start-Up & Scale-Up Funding – The Landscape

Robert Marusco
Dec 2, 2021
Entrepreneurship
3
minute read

With the holidays upon us and 2021 drawing to a close it's with interest I note the strong growth in global trade said to be worth US$28 trillion in 2021 and good economic activity. This strong growth in demand – for goods, as opposed to services - is largely the result of pandemic restrictions easing, but also from economic stimulus packages and sharp increases in the price of raw materials. The pandemic continues to throw up curve balls but despite this, start-up funding is a topic that’s constantly on entrepreneurs’ minds.

We continue to assist our hard-working Australian entrepreneurs to understand the financing and funding options and landscape. The capital markets have been strong and the capital raisings boom on the ASX continued in 2021. Start-up and scale up businesses have to work twice as hard in the private investor and private equity environment to be seen and heard.

Although the pandemic continues to feature, in the well-vaccinated wealthier countries of the world, year three of the pandemic will be better than year two, and COVID-19 will have much less impact on health and everyday activities. Vaccines have weakened the link between cases and deaths in many of the wealthier countries and new antibody and antiviral treatments, and better vaccines, are on the way. It’s said that pandemics do not die — they fade away – that is what commentators are suggesting COVID-19 is likely to do in 2022.

So, it follows the race and hunt for investment capital will continue strongly with Australian entrepreneurs fighting for their time in the spotlight. We all know that developing a great business takes commitment, diligence, patience and in many cases, substantial sums of money. Navigating the venturesome path of targeting your product or service or finding product/market fit is one thing, finding and securing the resources that will allow you to focus and grow is another.

Finding financing for your start-up and boosting scale-up with new capital are a necessary and well documented flight path for every entrepreneur and we know they can prove to be a huge stress and burden if you don’t know where to look. We see many start-up/scale-up entrepreneurial clients that are deep in the thick of business on every front, knowing that their runway to revenue has a ticking countdown, and as a result one needs to spend just as much time on getting funded as running the company.

Fear not however, as there are numerous solutions to access capital. The capital markets themselves are innovative and deliver more alternative solutions every year, which assists connecting you and your company to attract investment and leverage your assets for loans. There continues to be a huge influx of investment capital, a wide variety of debt funding sources or government incentives for small and medium enterprises.

We remain focused on connecting the world of capital with awesome opportunities.

The capital world is very broad and apart from your own funding, investment capital can be sourced from many sectors including;

·        “Friends, family, & fools”

·        Equity financing rounds – pre-seed, seed, series A, series B, etc.

·        Angel investors, networks, and syndicates

·        Family offices

·        Venture Capital Funds

·        Incubators and Accelerators

·        Equity crowdfunding

·        Rewards-based crowdfunding

·        Debt financing

·        R & D finance

·        Government funding including R & D tax credits

Do you need funding? – then talk to us and let’s get moving on the journey!

Finally, may you all have the most amazing time celebrating with your family and friends. We wish everyone a very Merry Christmas and a Safe, Healthy, and Prosperous New Year. 

Yours faithfully,

Robert Marusco

Director & Co-Founder

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Article by
Robert Marusco
Over the past 30 years, Rob’s professional and business career has covered three areas of core competencies. Previously, as director of a large financial services group, he developed an extensive client base across a diverse range of industries and markets. Rob’s focus on financial reporting, taxation law, Corporations Act and financial interpretation has provided a robust advisory platform in relation to his work in taxation structuring, business development, financial strategy and modelling.
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