Fundraising for a new tech start-up

Background/ Situation

Our client was a Brisbane-based entrepreneur who wanted to develop and launch an internet business portal (similar to a Google-type search engine). In order to raise funds for the start-up, a comprehensive business plan supported by a long-term profit and cash forecast needed to be developed. In addition, the drafting of an Offer Information Memorandum to support the fund raising, similar to a small business prospectus, was required. This also needed to be approved by ASIC.

Initial Findings

The project was a totally new venture without any close precedents in the market. A great deal of research and risk analysis was conducted before the business plan, and other related documents, were published.

Solutions, Strategies and Recommendations

Initially, MACHUS Solutions was accountable to the client. However, as time went on, MACHUS’ CEO, Mac Radomyski, was appointed as a director and financial controller of the venture. He consequently dealt with investors, employees, lawyers, accountants and other stakeholders.

The fund raising proved to be a very large assignment. Different strategies were required for each stage of the venture, including capital raising, software development, marketing, relationship and building with key players in the market.

Implementation and Results

The business plan was delivered as required, including a financial business model and sensitivity analysis which were welcomed by prospective investors. The Offer Information Memorandum, as compiled by MACHUS was approved by ASIC. It was the first Offer Information Memorandum to be approved after the legislation for this requirement was introduced.

The initial fund raising stages were completed successfully and the business employed a team of software developers and a team marketing people to start the project. MACHUS met the original brief and eventually left the organisation to focus on helping other businesses achieve their objectives.