November 21, 2019

Smart money - when a capital raise is more than the $$$

There are many different ways to invest.

Depending on risk appetite and personal circumstances, there are passive and active investment strategies that investors can get exposure to. There is also the opportunity for investors to select between conservative, balanced or growth portfolios as they seek to accumulate wealth.

Sometimes investors want more than that. They might offer capital but also support, new skills, experience and be part of a company in transformation. For the companies that might attract this type of investment, it is a fantastic opportunity!

Investor talent comes in all shapes and sizes and is multifaceted. An early-stage business might be looking for support in recruitment, to access capital, for introductions and facilitating partnerships and relationship building, advice on commercialisation and PR. A new business can easily get hamstrung navigating the operations side of running a business. Having someone who has ‘been there, done that’ and can give easy direction around obstacles allowing the business to focus on developing their ideas is a real ‘value-add’.

This is seen frequently in the angel world where early-stage businesses are often ideas-rich, and favour investor-expertise over investor-dollars. As a result we find the angel network are a tight community of experienced and skilled investors mentoring and supporting the innovation and ingenuity of future businesses.

Even mature businesses can benefit from external capital that comes with expertise. They may face succession issues and need to find new capability as well as new capital to facilitate the retirement of a business owner, or they may need execution capability or relevant experience as they diversify into new markets or consider mergers or acquisitions.

Active investors are present in all sectors. Traditional industries that are having to rapidly adapt to technological changes might benefit from a new perspective and tech-expertise. A business might need additional skill and support that the usual advisers (accountants and lawyers) aren’t equipped to give. An investor might want to enrich their investment experience by lending their expertise, perhaps coming in with a new skill set, with a thirst to aid in the business growth and evolvement.

To many investors, there is great satisfaction and stimulation from being able to contribute to help grow these businesses on top of growing your investment. While wealth is a great motivation it may allow you to get back to grass roots of your upbringing or test the waters of an industry you’ve dreamed of, or simply wanting to pass on self-learnt experience and know-how with the best of intentions of being involved, but without the burden of too much responsibility.

So how do these relationships come together?

Rather than enter a real life version of the ‘dragon’s den’ (although regular pitch nights exist in the angel community) investors can offer their smart money during the due diligence process.

At Syndex we’ve facilitated businesses seeking smart money via our investment opportunities market on numerous occasions. An investment listing can outline the type of investor/s and their desired skills that are sought out and from there expressions of interest are invited.

Likewise, we’ve had investors specify their intention to be a smart money investor and we have assisted in matching them with suitable contacts. For any investor, ‘expressing interest’ on the investment opportunities listings connects interested parties, so potential partnerships can be explored and negotiated.

These investor relationships are hugely important. Our economic growth and technological advances rely on these businesses succeeding and these helping hands can be the make or break. Syndex takes pride in the part it plays in this important step in the growth and development of private enterprises. If you’d like to discuss your smart money investment objectives, either in capital raising or investing please get in contact:

To see current marketplace listings click here.

Financial investment involves risk of loss - please seek professional advice before making any investment decisions.  The views and opinions expressed in this blog are those of the authors. The information we present is of a general nature and should be used as a place to start your own research. It is not intended as investment or financial advice.

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Ross Verry

Ross Verry is CEO of Syndex and a shareholder. The views expressed above are purely his own. Please assess and research all your investment.

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