CAPstart has been developed to primarily assist SMEs and Entrepreneurs with early stage development of their new venture or technology. This is done through programs to assist Entrepreneurs to determine how far they have progressed in becoming commercial and investment ready and then listing on CAPstart Private Equity Market to raise new capital to start business or for early expansion.

CAPstart Private Equity Market is Australia's largest community of private Investors. CAPstart is a cost effective and efficient personal service for both Investors and Small/ Medium Enterprises (SMEs) who wish to invest in or raise private equity.

CAPstart is continually developing its web enabled technology to provide the most effective, cost efficient and timely means for assisting SMEs and Entrepreneurs become investment ready and matching these with Angel Investors.

CAPstart programs and capital raising systems are aimed at:

• New technology commercialisation start ups
• SMEs with new products and new market opportunities
• SMEs in high growth needing working capital
• Management buyouts or business acquisitions

Listing on CAPstart Private Equity Market

CAPstart is a unique funding program designed to help fast growing SME's (Small/Medium Enterprises) and Entrepreneurs advertise their exciting ventures online to investors, without the expensive costs of a prospectus.

Our system is designed to present a summary of the growing SME to potential investors, allowing the SME to "test the waters" and check if its business proposal is attractive to investors.

Growing private companies and entrepreneurs can now register their business proposals, including summary information, with CAPstart. Their summaries contain key information for investors including; the capital required, business stage, product demand, pricing strategy, competitive advantages and cumulative sales, without revealing the identity of the business.

Capstart Market will promote the SME to CAPstart Investors both through personal contact and web activities. CAPstart has one of the largest communities of Angel Investors in Australia and the SME summary reaches many hundreds of potential investors or their advisers. Providing the SME information excites the investor, CAPstart will be ready to answer investors' questions on behalf of the SME and negotiate a successful capital raising.

The Capstart Market management team are always available to provide assistance in every part of the capital raising process for both Investors and SMEs

Donovan Wearne, Director of Capstart Private Equity Market Pty Limted is the main executive servicing CAPstart.

What CAPstart can do for SME's and Entrepreneurs wishing to raise capital and participate in other CAPstart Programs includes:

• Standard format of initial SME information and registration for all CAPstart programs
• SME information professionally reviewed for the Investment Review and Workshop (up to 10 hours included in the program fee)
• Business plan not needed at initial stage
• For Commercial Assessment and Investment Ready programs you are dealing with professional and industry experienced reviewers
• Professionally coordinated negotiations and due diligence for capital raising clients
• Success fee paid only upon successful raising of new equity capital
• SMEs can use the CAPstart to "test the waters" to ascertain likely investor interest in their proposal
• Efficient low cost distribution system to Australian, New Zealand and other Overseas investors

CAPstart is an exciting place to start for SMEs considering a commercial assessment and external capital raising or when investors are looking for the best in SME/technology ventures. START IT RIGHT! CAPstart it!

Advisers to SMEs can list their client opportunities on CAPstart Market and represent the SME during the negotiations and due diligence.

CAPstart Programs

SMEs now have several CAPstart choices when seeking new capital or assistance to become investment ready:

1. Commercialization assessment

Many entrepreneurs & SME's find it difficult to assess the commercial potential of their project. Others may be uncertain of how far they are along the process of commercialization and importantly where next to direct their energies to best realize the commercial potential of their business. Vital time and seed capital can be spent on activities that do not add much value or unnecessarily delay the process of getting to market.

This program is designed to give entrepreneurs and SME's professional feedback that analyses their strengths and weaknesses with suggestions on how to improve business potential and commercial attractiveness.

SMEs complete the CAPstart template/profile and will receive an assessment with written tips and helpful pointers along with up to a 1 hour telephone debriefing and Q&A session.

A commercialization assessment can save time and money on project development and also attracts a $600.00 discount on your CAPstart Investment Ready Review Program.

Program fee $600.00 + GST

2. CAPstart Investment Ready Review Workshop Program

Contrary to the SME's expectations the majority of the organizations who register with us to raise equity capital are not investment ready first time round.

The Investment Review process consists of an 8-10 hour in depth personal workshop usually conducted over several sessions and is designed to work through the structure and presentation together with any shortfalls, omissions and inconsistencies in your CAPstart template/profile.

Respondents complete the CAPstart template/profile and undergo a personal workshop of up to 10 hours working through the templated information with the CAPstart Executive.

The programs purpose is to verify your investment readiness and ensure the clearest and most succinct presentation of your business opportunity to potential investors.

Program fee $2,500.00 + GST
Less $600.00 discount where CAPstart has previously
conducted a Commercialization Assessment

The Investment Ready Review and Workshop is a prerequisite to the CAPstart Private Equity Market listing process

3. Listing on CAPstart Private Equity Market to attract investor equity capital

How It Works

• SMEs/Entrepreneurs must complete a registration form and undergo the Investment Ready Review and Workshop program and complete the CAPstart Listing registration procedure.
• This CAPstart Investment Ready Review and Workshop includes a personal up to 10 hour review conducted by CAPstart executives with the entrepreneur.
• As part of the CAPstart program we will negotiate with potential investors on behalf of SMEs. This includes suggesting the best structure for particular potential Investors and assisting with the shareholders agreement.
• If a successful raising is achieved from any source connected with CAPstart, the SME is pays a success fee of 5% of the capital raised to CAPstart with a minimum of $25,000.
• No CAPstart fees other than the product costs (or other specifically agreed fees) are payable if success is not achieved.
• CAPstart has the right to reject or request modifications to any SME listing proposal.
• SME listings are for 6 months. During this time we encourage SMEs to advise us of significant achievements which we can publicise to potential Investors.
• CAPstart have a Financial Services Licence issued by the Australian Securities and Investment

Entrepreneurs and SME's will have different capital raising strategies and commercial sensitivities. CAPstart Private Equity Market therefore provides a series of listing services:

1. Exclusive Listing

This allows the entrepreneur or SME's to list on CAPstart and procure Capstart Market's services to assist with all investor negotiations.

CAPstart's success fee applies for all capital raisings during the period of exclusivity irrespective of the source of investor introduction.

Applicable fee for an exclusive listing $500.00

2. Non Exclusive Listing

This enables the entrepreneur or SME to list on CAPstart and seek venture capital independently from other sources.

In this case, CAPstart's success fee only applies for investments made through investors introduced by CAPstart.

Price on Application

3. Unlisted Private Equity Raising for commercially sensitive projects

This allows the entrepreneurs or SME's to register with CAPstart and procure Capstart Market's services without having to publish their details on the CAPstart website. Depending on the project this may include a direct approach to chosen institutions and target organizations.

CAPstart's success fee applies for all capital raisings during the period of exclusivity irrespective of the source of investor introduction.

Price on Application

To register for CAPstart Products

1. Read the SME Information
2. Choose the CAPstart product that you wish to purchase.
3. Complete SME Registration Form inserting User Name and Password.
4. When User Name and Password are acknowledged complete Login section and start entering the SME information requested. Remember you should progressively save the information (particularly if you are using a dial up connection) by clicking on "Progressive Save" and re-enter via pressing "back" or the "Login" process in "SME Registration" as per 5 below.
5. You can also complete the SME form over several sessions by clicking the "Progressive Save" button and re-entering the form by inserting your User Name and Password in the "SME Registration - Login" section.
6. When the SME form is complete press "Submit" and arrange payment.
7. A CAPstart Market executive will contact you for a review of the information.
8. If you are listing on the CAPstart you must first complete the Investment Review and Workshop.

Go to SME Registration Form

SME Preparation

Suggested Preparation for SME Equity Raising

General Preparation

As SMEs vary greatly in size, management and financial capability, it is difficult to set out universal preparations required for all SMEs. The following is offered as a guide:

• Is your business capable of real growth? Investors are generally unlikely to be interested in static businesses.
• If your business has the potential to sell its products or services internationally, you need to understand the possible markets and how you would distribute and sell in these markets
• Is it possible to protect your products or technology by patents?
• Establish a competitor intelligence system that enables a better understanding of any competitors and the market place
• Are your competitive advantages clearly identified? These could include price, service, quality, scalability and uniqueness
• Review any business or other plans
• Review your business structure. For example, is it suitable for including new investors and expansion? Have all personal, non-business assets and liabilities been taken out?
• Review your management information systems. Do you have important business indicators identified, i.e. KPIs (key performance indicators)?
• Review management structure. Does your business have all the necessary business skills and experience in place to expand the business? If not what skills could help you?
• Consider the advantages of having a small number of non-executive directors on your board

Specific Capital Raising Preparation

• Ensure you have a good presentation which shows management: skills, determination and personality, because unless the investor strongly believes in management he/she is unlikely to invest
• Ensure you can explain simply and credibly why your proposition has unique advantages over other businesses
• Identify how you are going to get distribution and sales of the product
• Review your plans against specific details of the proposed capital raising.
• Identify any weaknesses of your business and how these will be handled.
• Understand the legal issues regarding the proposed capital raising.
• Consider carefully the current value of your business.
• Identify the proposed rewards to an investor in a realistic way. Unless there is significant reward to an investor, bearing in mind the risk involved, it is going to be difficult to attract new investors.
• How can a new investor sell his investment within a period of say, 3 to 5 years?
• You need to identify and have a reasoned position for: percentage of equity given; dividend policy; any special conditions, such as rights to appoint directors, management reporting systems, exit mechanisms, etc.

Some of the above needs to be incorporated into a shareholders' agreement and subscription agreement. Capstart Market and your legal adviser can assist and arrange this.