This LinkedIn Post is written for Australian Startup (or Scale-ups) CEOs who are thinking to raise capital or finding distribution partners from overseas such as Hong Kong or Singapore or Tokyo.
During the past two years, I had been a project manager, supporting and organising five (5) Australian Missions (3 Missions related to Healthtech Startups/Scaleup and 2 Missions related to Fintech and Financial Services), meeting around 70-80 investors of various categories such as angels, HNWI, PE Funds, VCs, Family offices and banks.
In my opinion, cultural and communication barriers are not the main reasons leading to misunderstandings and misalignments in expectations between Australian entrepreneurs and Asian investors/partners. Australian CEO may face these blind spots when trying to raise funding or finding distribution partners in Asian cities.
1. Investible and Readiness
– CEOs may assume a great idea is enough to attract investors
– Investors need to see proof of concept and market traction, e.g. how and where to validate your technology, products or services?
– Investors are interested to know about your detail monetarisation plan and when they can get back their invested money
2. Overestimating Market Demand
– CEOs often overestimate the market demand for their product or service (as there are many other competitors already in the market).
3. Neglecting of Audited Financial Reports
– Lack of audited financial statements in the past two to three years have deterred investors (even your Startup is a pre-revenue company)
– The financial statements could tell the investors about your financial metrics such as burn rate, runway, and how much you have invested into R&D (this helps to decide the company valuation), etc.
4. Poor Pitch Preparation
– Failing to prepare a compelling and concise pitch.
5. Inadequate Networking
– Relying solely on cold pitches and neglecting relationship-building (and follow-ups via zoom or emails or messaging).
6. Not Understanding Investor Needs
– Failing to align with what investors are looking for.
7. Underestimating Time and Effort Required
– Believing that raising capital will be quick and easy.
– Underestimating the time and effort can lead to rushed or poorly executed fundraising rounds.
8. Overemphasis on Valuation
– Focusing too much on securing a high company valuation.
9. Inflexibility
– Being inflexible with terms and negotiations.
– Inflexibility can turn away potential investors and/or distribution partners of your technology, products or services
By being aware of these blind spots and actively addressing them, Australian startup/scale-ups CEOs can improve their chances of successfully raising the capital needed to grow their businesses.
If you are interested to learn more about how to raise funding, find distribution partners and attract investor’s attention in Asia, please write email to [email protected]. Thank you.
