Tuesday, March 3rd, 2015


Sydney, 3 March 2015

Is this the evidence we have been looking for?

A study released today conducted by Business Connector reveals

  • 54% of companies raising capital are looking to raise $500K or more which seems to dispel the myth that most companies are not raising enough funds
  • Over 2/3 of respondents are in revenue and many companies seeking funding are substantial SMEs ($5M+ annual revenue), allowing them to substantiate the funds they’re seeking
  • However, A disturbing 50% are approaching funding without a business plan in hand only 1/3 have a proper cash flow forecast

These findings and many more deep insights into the SME and startup funding landscape are available through the full research report available here:


The research provides a snapshot view into the funding habits of the sector; with 179 companies in various stages of seeking funding, answering an exhaustive questionnaire.

“We are seeing a shift in how SME businesses are being funded that is remarkably different from how the typical StartUp is being funded,” says Mike Boorn Plener, Founder of Business Connector. “Most of these businesses will go and test the market first, build revenue and THEN raise capital, not the other way around.”

“While many of these businesses may represent lesser growth opportunities I think it’s fair to say their chance of success is much higher than the average startup, indeed 65% of respondents are already in revenue,” says Neil Livingstone, Founder of CFO Advisory of the Business Connector study.

The author of the study, Mike Boorn Plener, of Business Connector in Sydney says: “When we started the study we intended to get a pulse on what’s happening right now across this very important section of the economy, but I was surprised by some of the findings.”

The study shows that the potential multiplier effect on growth is remarkably high. Indeed if the sector is able to attract the funding it needs it will mean a 30% lift in the forecast GDP growth over the next 4 years. The question is of course, whether banks, equity players and policy makers are ready to support this step up.





  Mike is Executive Producer of Funding Connector, which addresses the issue of funding across all SME businesses and startups, and includes 10 expert    speakers from government and advisory firms.


“We started this because too many business owners are leaving ‘money on the table’, funding that is readily available from alternative lenders, crowd-funding campaigns and government grants; all of which is available without parting with shares in the company you’re running,” says Plener of Business Connector.


So how important is the right kind of funding in helping SMEs grow and take on the world?

Many startups and early-stage businesses decide that raising private capital is the only way to go to provide the capital they need to grow their business. Here are three different views.

Ying Wang, Co-Founder of Venuemob says “Having a corporate partner like Optus was especially helpful during the growth stage. The initial funding from Optus allowed us to do everything we needed to get started.”

In order to be successfully funded, Rob Ward, Co-Founder of Annex Products took a different route that is becoming increasingly popular: Crowdfunding. He says of the experience: “Without crowdfunding through Kickstarter, it would’ve been hard to get the company off the ground. It was great validation that people wanted the product we were producing.”

On the other hand Edward Lakman, founder of iframes, went to the banks at a very early stage to raise funds. “We provided cash flow forecasts and a strong business plan, as you would expect. Once we figured which of the banks wanted to talk to us it was easy. I did the whole application process over the phone with ANZ.”


High resolution images and interviews are available on request.

Media Contact:

Mike Boorn Plener

0413 313 314

[email protected]

About Business Connector

Through events, training, books, reports, research and its Online Alliance, Business Connector acts as a catalyst for rapid growth and a broker for talent, funding and business services.

In our four-year history, we have developed relationships with a wide range of organisations and a 5,000+ strong network of primary program participants.  When we engaged this community in research projects, we identified quite different needs for companies, depending on the level of maturity of the business.


Contact Profile

Business Connector

At Business Connector we believe that Australian SME businesses have a massive untapped potential. And only by bringing people together and connecting business owners with each other and with people from large enterprises and government can we together grow what is the most important sector in Australia's future.
Mike Boorn Plener, CEO
P: 0413 313 314
W: businessconnector.com.au


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