CAPITAL OFFERS (For Entrepreneurs)

 
Startup and SMEs- Capital Raising Entrepreneurs
 
Our typical clients are the ones who were unable to successfully utilize domestic fund raising services. Raising capital is moderately challenging in Australia, with a typical retail domestic investor being risk averse, with a traditional preference for “brick and mortar” property investment. Our clients have also found that large up front fees of capital raising firms, are an impossible barrier to overcome. Some of our clients, who paid and engaged capital raising firms, have indeed received the perfect corporate advisory services and offering documents delivered, but in the end, no actual capital at all. With focus on up front and certain consulting fees, the typical firms are largely staffed on advisory consultants, and thinly on the actual sales side.
 
While by no means is it every client experience, there are many firms in the capital raising industry that sell and live from the business advisory services, and are challenged in delivering the actual capital. In fact, most capital raising firms actually sell business advisory services wrapped as capital raising services, and indeed do prepare a firm ready legally and commercially for capital raising. However, most don’t realise that the actual capital raising saleswork is done by the startup itself, within its own network (family and friends), just better prepared and dressed for closure.
 
On the flip side, capital raising firms have some initial costs in accepting a client, as well as the clients commitment to the capital raising process if money is involved up front. Hence, some up front fees are fair play. Therefore, we have structured our client offer with a nominal commitment fee, and pack of optional services a client can choose from. An unbundled offer !
 
Our services have another major difference from the standard- all our investors are international or sophisticated domestic investors, not retail domestic investors. International investors have different goals for their capital and hence capital seekers may have a very different allure internationally than domestically.
 
Specifically, we seek foreign investors that seek a residency visa through the 132 and/or Significant Investment Visa (SIV) immigration program. The objective for these investors, who are required to place in equity $1.5-$2.5 million under 132 visa or $5 million under SIV correspondingly, is meeting the visa conditions and acquiring residency in Australia, not just the investment returns.
 
The domestic sophisticate (high net worth) are obviously motivated by tax rebate incentives as they seek to minimize tax on their obviously significant incomes and are able to do so through tax offsets of ESIC qualified investments (se ESIC on ATO web site).
 

phone: +61 405 506 152 | info@ptgcapital.com | WWW.PTGCAPITAL.COM