If you think you are ready to get the show on the road, Register Your Interest with OnMarket here, and complete the application form. This process will allow us to get to know your business to ensure you are ready to raise fund via OnMarket. It will then be followed by the preparation of the campaign documents and supporting materials.
All companies are different and investors will want to see why your company is unique. So when creating your campaign, it’s important to establish whether your company is at seed, early, or growth stage. As a general guide:
Knowing where your company is in its evolution will set the basis for your campaign, while also informing investors about the risks associated with investing in companies at the different phases.
The amount that you can raise will generally be dependent on the stage your business is at, and can range from as little as $300k via a Seed Round and up to a maximum amount of $5 million for Growth Stage companies and beyond. Generally, you should aim to raise the amount needed to take your business to the next phase of growth. While setting your goal, keep in mind that meeting your minimum goal is an all or nothing threshold. If you don’t meet the minimum, the campaign will be closed and investors will get their money back. With that said you should be wary of aiming for so little that you’ll need to raise funds again very soon after.
A valuation is the process of determining the current worth of your business. The valuation will also determine the percentage of equity that investors will receive in exchange for the funds raised. It is important to note that valuation is more art than science, and alongside whether an investor likes your business, the valuation is an important part of an investor’s investment decision.
Some investors will be put off by a valuation they think is too high even if everything else in the campaign appeals to them. However, be aware that by pricing it too low you might be giving away too much equity too early. There are many ways in which you can value a company, and we would be happy to give you some tips.
After you have submitted your application, we will ask you some questions to better understand your business and to make sure you are ready to raise. These questions will focus on our Five Pillars of Due Diligence, including Business, People, Financials, Legal and Risk. Further detail on what information we will require from you is detailed in out Due Diligence Commitment here.
This also means that we will be checking that your campaign contains all the required information and that the statements you make are not misleading or deceptive. Whilst your campaign should be informative and compelling, you need to ensure that you can validate any factual claims with supporting evidence and that any future/opinion statements are reasonable in context.
The purpose of the information contained in your campaign is to educate investors about your idea, your team and the market. The best way to communicate this information to investors is by telling them your story. Whilst listing the businesses’ achievements and a clear outline of how the business will grow is important, your campaign should give investors a sense of who you are, why you’re passionate about this business, and why you think it could become the next big thing.
We’ve asked the OnMarket Crowd what they focus on when investing and it’s clear that the video should be front and centre on your campaign. This is an opportunity for prospective investors to hear directly from you and it’s your best chance to make a good impression. All great videos aren’t made the same, but successful videos have included the management team speaking to the camera, shots showcasing the product or settings relevant to the industry in which the business operates in. We will be there to help you put your best foot forward.