The survey was conducted by Wholesale Investor magazine on the registered database of 4,286 high net worth, wholesale, professional and international investors. Full details of the survey can be obtained by going to http://www.wholesaleinvestor.com.au
Key points are:
- Investors remain optimistic: 99% of investors are positive about investing right now (up from 96% in May 09 survey)
- Investors have deployed capital: 60.1% have 50% of more of their portfolio in cash (down from 80% in May 09)
- Private Companies still preferred: 59.3% of investors prefer to invest into private companies (down from 71% in May 09)
- Billions of cash ready to invest: 34.5%have a portfolio of $1m and above 13.9% have a portfolio of $5m and above
- Cleantech/Greentech remains hot: 50% of investors place Cleantech as number one on their list of referred sectors to invest into. IT/Internet is placed second, followed by Financial Services then Property
- Distressed Assets sought: 55% of investors seek to invest into undervalued opportunities or companies in VA
- Management Team is the key: 77% feel that Quality of Management is the most important investment criteria. This is followed by Proof of Concept, Sector and Exit Strategy
This survey gives an in-depth insight into specifically what investors are seeking when making investment decisions and deploying capital. This greatly assists companies and entrepreneurs to shape thier investment offers, greatly increasing their chance to raise capital.
Key points for Entrepreneurs seeking capital:
- Focus on building a very strong board and management
- Only target investors who invest into your sector
- Offer around 20% - this seems to be the optimum level
- Be realistic on valuation – get it stress tested by advisors or friendly investors
- Identify yourself as seeking a passive, active or strategic investor
- Be flexible – investors today seek more than a ride when investing into private companies. They want to become actively involved so be prepared for this
- Be prepared! Investors in the survey highlight that 41% of opportunities they seek are not “investor ready”. Companies need to seek the right advisor, or get educated on becoming investor ready
- Raise capital now! Investors are active right now and have cash. Don’t wait till the market recovers – as values go up – investors’ appetite for deals, and cash available will drop.
Wholesale Investor is Australia's leading private investment platform showcasing Private, Pre-IPO and Life Sciences ASX Listed Opportunities to over 8,600 High Net Worth, Professional and International investors.
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