Approximate read time: 3 minutes
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.
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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
- 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);
- 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);
- The difference between capital received and sought was on average $39,167 (median: $37,000) higher than founders expectations;
- The difference between equity received and offered was on average 3% (median: 3%) higher than founders expectations;
- The difference between expected company valuations was on average $147,222 (median: $500,000) lower that founders expectations; and
- 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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