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The State Of Adelaide Startup Funding Report 2015

The Results Of The 2015 State Of Adelaide Startup Funding Survey

One of the main complaints I have heard over the past 4 years as a startup community leader in Adelaide is that “there is no money in Adelaide.”

I’m certainly not the only one who has heard that either…

Based on that notion, I did some primary survey research into venture capital in Adelaide particularly at the Angel and Seed stage for tech (web & mobile etc) startups to answer that question.

Below are the results and some commentary.

The State Of Adelaide Startup Funding Report 2015

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Survey Results

1. Have you raised angel or seed capital?
Yes: 46%
No: 54%

2. How much angel or seed capital did you/want to raise?
Raised: $319,167
Want to raise: $280,000

3. How much equity did you/will you give away?
Gave away: 19%
Willing to give: 16%

4. What is you company worth?
Ideal valuation: $1,750,000
Actual valuation: $1,602,778

5. What was/is your main hurdle in raising seed capital?
“Finding investors”

NOTE: Geographic location of investors was not researched and investment from startup accelerators was not captured.

Commentary

  1. Adelaide based startups are seeking on average $280,000 (median: $200,000) in exchange for on average 16% (median: 20%)of the company, to be valued at on average $1,750,000 (median: $1,000,000);
  2. Investors have given on average $319,167 (median: $162,500) in exchange for on average 19% (median: 18%) of the company, to be valued at on average $1,602,778 (median: $1,500,000);
  3. The difference between capital received and sought was on average $39,167 (median: $37,000) higher than founders expectations;
  4. The difference between equity received and offered was on average 3% (median: 3%) higher than founders expectations;
  5. The difference between expected company valuations was on average $147,222 (median: $500,000) lower that founders expectations; and
  6. The biggest hurdle for startups raising capital was finding investors.

Conclusion

These results indicate that there is angel and seed money being invested in Adelaide based startups.

Next Actions

  • Want to get introductions to Adelaide investors or founders, click here.
  • Get notified about or get your details captured in the 2016 version here.
  • I’d love to hear your thoughts on this as an investor or founder.

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