A solid overview of Australian startup funding


blog Most of us in the technology sector spend most of our time thinking about technology, strangely enough. That’s why it’s a shock for so many to enter the IT startup world and start thinking about money as well. Thankfully, Mark Greig, the commercial director of Pollenizer Global (and chairman of Pollenizer’s Investment Council) has published an extremely common sense blog post outlining some the basic things you need to know about investing in Australian IT startups. One sample paragraph, for example, reads:

“The most common form of investment (financing) in early stage ventures in Australia is via priced rounds – where in return for an investment you get shares in a company (equity). What a “priced round” means is that investment money has been “priced” i.e. the value of the company at which an Angel investor would buy shares has been set and actual shares in the company are issued. This is typically how Pollenizer has been raising Angel capital in the past.”

Greig goes on to talk about the differences between early stage financing in Australia and in the US, convertible debt and how it’s used in Australia, convertible debt versus priced rounds and eve investor rights and the changing discussion around convertible debt versus convertible equity. For those in the IT startup sector and having to deal with the money side, I’d consider this a valuable post worth checking out. For those who don’t know about them, Pollenizer is an extremely successful Australian business which helps local IT startups transform their ideas into reality. They’re pretty cool ;)