Australian private equity and venture capital industry avoid SMEs which are the backbone of jobs creation and innovation in Australia.
AAIMX facilitates and assists client funding raising activities. Using AAIMX services enhances the transparency and authenticity of a clients business. AAIMX delivers a pathway to solve the traditional problems faced by entrepreneurs and SMEs is securing seed, growth and expansion funds.
Creating value in a business is increasingly predicated on developing and controlling intellectual property assets. The value of intellectual property as a percentage of the market value of a business has increased dramatically from 5% in 1978 to 72% in 1998.
The economic advantages intellectual property assets deliver to a business:
Traditional business valuations examine similar companies based on their size, industry, and business description whereas intellectual asset valuation is based on the similarity between a potential guideline of the company's intellectual assets and the subject intellectual assets.
Problems with Private Equity and Venture Capital FundingThe problems many entrepreneurs and SMEs face is securing and giving by effective control to private equity and venture capital funding providers. Funding sourced from private equity and venture capital funds requires an abnormally high discount rate to account for additional risk implicit in a start-up The Weighted Average Cost of Capital is the percentage return required by private equity or venture capital firm's investors in return for undertaking the risk of investing in the business.
The high discount on the valuation of SMEs by private equity and venture capital firms gives rise to widespread discontent from business founders. Due mainly to a large percentage of any value upside being diverted/ lost by business founders.
Venture Capital firms risk assessment considerations can include:
Value Terms to Know