Entrepreneur FAQ's - Australian Angel Investment Network

Entrepreneur FAQ

What is the Australian Investment Network?
The Australian Investment Network is an online platform designed to connect entrepreneurs (looking for growth or start-up capital) and angel investors (looking for investment opportunities). The Australian Investment Network is unique in that it offers a local, national and global platform with partner networks across North America, South America, Europe, Africa, Asia and Australasia. The Australian Investment Network is continually growing, developing and updating its extensive database of angel investors.

What is an Angel Investor?
Originally, the term “angel” was coined to refer to the people who financed Broadway plays when all else failed. Today this term has become common among the investment community to refer to a high net-worth individual that invests their own personal funds in various businesses. In Australia, it is estimated that there are well over 200,000 potential angel investors that annually invest approximately $500 million in Australian businesses and currently own over $1 billion in existing equity. This represents roughly 7% of what the banks are investing. As well, statistics show that this figure trumps that of venture capital lending. The Australian labour market and productivity centre estimates that angel investments have financed approximately twice as many firms as any other form of external equity investment, including institutional venture capital.

Who is a typical Angel Investor?
Angel investors are often retired entrepreneurs or executives, who may be interested in angel investing for reasons that go beyond pure monetary return. These include wanting to keep abreast of current developments in a particular business arena, mentoring another generation of entrepreneurs, and making use of their experience and networks on a less-than-full-time basis. Thus, in addition to funds, angel investors can often provide valuable management advice and important contacts.

What is the difference between an Angel Investor and a Venture Capital firm?
Angels make their own decisions as opposed to a board or group of people making a decision for investors that have pooled money together. Angels tend to be more involved in the businesses that they invest in and provide assistance in ways that venture capital firms do not. Angels typically do not own as large a stake in the company as a venture capital firm would. Another benefit of being an angel investor is the reception of certain tax incentives from investing in Australian controlled small businesses.

How much does it cost?
More information can be found on Our Rates Page.

Why isn’t it free of charge?
Many people have asked us why we charge entrepreneurs for the service. Firstly we are running a commercial enterprise and don’t get any public funding, so we need to cover our admin and promotion costs, pay staff to check your submission and pay for the upkeep of the website. Secondly we are providing a valuable service to the entrepreneurs who need the much needed to support to get their ideas in front of investors. To set up a serious business with outside funding you do need to be prepared to spend some money. The fee is very low compared to other companies in the industry who will often charge around 5% of the amount you wish to borrow.

Do I have to pay for every contact?
No, the Express, Express Plus and Global Express Plus packages all give you to access to the contact details of ALL the investors who wish to contact you. Your proposal remains active for 90 days and all investor contacts are included in this period. You do not need to pay for each contact.

Why don’t you take a success fee instead?
If you think of Angel Investment Network as the funding equivalent of an online dating agency it makes more sense. You wouldn’t expect a dating agency to only get paid if and when you marry the partner you found on their site. They wouldn’t be able to find you or know you were getting married without employing a private detective! Likewise we can’t hope to individually track everyone who enters their idea over the internet. Often all we have is an email address for you. Plus we have no control over how good your idea is and therefore your likelihood of finding an Angel. There may be a few Angel groups who don’t charge upfront, but they heavily screen incoming ideas and reject about 90% of them, which means most people are left without a chance of connecting with Angels.

How do I know if my proposal has been received?
You will know that your proposal has been received if it appears in the list of "Active Proposals" in your member's area. If there are no proposals in your member's area then you will need to resubmit your proposal. Always write your proposal in another programme and cut and paste to avoid the page timing out.

Why isn’t my proposal appearing in the list of recent proposals?
If you have just submitted your proposal, it is probably because we haven’t approved it yet. We have to read and activate each proposal before it is released to the investors. Alternatively it may be because you have just edited your proposal, which means that it is removed from the system until we reapprove it.

Does my company have to be established?
No, we accept projects at every stage of development – from ideas to start-up companies to mature businesses. Even if your project is still an idea, it could still be of interest to the investors. They might even have the relevant knowhow and expertise to get the ball rolling.

Is there a maximum/minimum investment?
No, our investors are interested in projects ranging from a few thousand dollars to millions of dollars.

Are the contact requests automated?
No, all the contact requests you receive are from investors who have read your investment proposal and decided they want to discuss your project in more detail.

Who are the investors on this website?
The investors on our website have been compiled from databases of angel investors, company directors and private investment groups. They also include individual investors who have registered in the hope of finding investment opportunities. Our database is continually expanding with new investors looking to invest in companies like yours.

How much information should I include in my proposal?
If you are worried about confidentiality we would advise you not to give away too many details in your proposal. Try and write enough to get the investors interested in your project without revealing the key ideas. In the "Useful Documents" page of our "Get Investor Ready" section, you will find a free NDA document, which you can get all the potential investors to sign before presenting your idea in full.

How is my privacy protected?
The site was developed using proprietary database management tools and a secure server is used to assure that no one sees your business or personal information. Your information is not offered to any third party for any purposes and is guaranteed to be kept confidential and private.

Why should I use this service?
As an entrepreneur, you are already aware of the growing resistance of banks in Australia to finance small business. It is virtually impossible to obtain financing without having secured assets, providing personal guarantees, etc, etc. Angel investors are the logical source to provide financing to small business. With $1 billion invested annually in Australia and growing all the time, the main obstacle is locating and presenting your idea to this large group of investors. The Australian Investment Network allows an entrepreneur to:
a) Find a source of capital.
b) Find an experienced investor that can provide guidance and support.
c) Make it all come together in a fast and efficient way.

How will I attract the attention of potential investors?
When dealing with an angel investor, at the very least your proposal should address the following:
- How much money do you need?
- Why do you need it?
- When do you need it?
- What are you willing to give up to get it?
- When and how can you pay it back?
Investors need your answers to these questions before they will even consider helping you. They are not looking for "pipe dreams" or unprofessional sounding proposals. They expect a reasonably sound business plan as well as an understanding from entrepreneurs that an investor is not going to just blindly hand over significant sums of money with no strings attached whatsoever. They may be angels but there are limits to what they are prepared to do.

How can I pay if I don't have a credit card?
If you are unable to or feel uncomfortable using a credit card, you can pay by PayPal, MoneyBookers or bank transfer.

Why am I being asked to pay again?
You have to pay the Express, Express Plus or Global Express Plus Fee for every proposal you submit.

Due Diligence
Please be aware that after the initial match has been made it is the entrepreneur's responsibility to carry out diligence on the investor. Please inform us of any suspicious behaviour.

I have other questions, who do I contact?
Contact us by email: admin@australianinvestmentnetwork.com

Australia > South Australia

$1,000 to $5,000

February 1, 2012

I'm a 36 year professional consulting in training and development. I'm looking for investment opportuities and looking to be a silent partner.

Australia > Queensland

$50,000 to $300,000

February 1, 2012

I have recently seperated and sold my previous business intrestes. I have set up and run international businesses and I am now activly looking for a ebusiness to invest in as I believe that internet businesses are the way of the future. I could be involde physically - Sales and Marketing, or in an advisory role. I would like to be close to the business, having said that I would be happy to be a silent investor aswell.

Australia > Victoria

$5,000 to $250,000

February 1, 2012

Two senior professionals (one middle aged and one mature aged) with significant experience in developing and growing small companies. Specific skills include: financial analysis, marketing, business development and mangement/ownership of small growth companies. Both gentlemen are married, tertiary qualified with one sitting on the Board of two small publicly listed companies and interests in a number of small private businesses. We are passionate about the growth of small companies and the vital role the companies play in the economic development of the Australian economy. We are interested in assisting companies grow and are looking for opportunities to add value to the company via hands-on involvement.

Singapore > Singapore

$100,000 to $500,000

January 31, 2012

An engineer by profession, I have experience in engineering and education related fields. I'm willing to explore other areas to maximize returns coupled with hands-on exposure

Australia > New South Wales

$500,000 to $20,000,000

January 30, 2012

We specialise in providing capital to businesses who wish to grow their current operations, and in providing transition opportunities for businesses seeking to move towards an exit in the near to mid-term horizon. Our funds are provided by high and ultra-high net worth individuals with significant levels of management experience across a wide range of industries. Our members are always happy to provide their insights and experience in and advisory capacity to those companies in which we invest. We see our investments as an opportunity for us to help companies grow both through the provision of capital and through the provision of significant management experience.

Australia > Victoria

$0 to $100,000

January 30, 2012

We are a group of investors who work in the executive team of a publically listed firm. We have a lot of experience is building businesses and can bring more than cash to an opportunity.

Australia > Australian Capital Territory

$5,000 to $250,000

January 29, 2012

I have a hospitality and security background with experience in a variety of industries. A degree in business management with a small portfolio of previous investments. I would like hands on role into any potential investments.

Australia > New South Wales

$1,000 to $50,000

January 29, 2012

Dynamic married professionals seeking a good investment to add to our successes we have created. We are both professionally trained in several sectors, healthcare& building services with successful businesses. We are happy to be hands on with our added experience and background in sales sees a great opportunity for a business to reach their goals and successes.

Australia > New South Wales

$25,000 to $500,000

January 29, 2012

- 36 Years old, married living in NSW. - 10 year finance, banking experience leading sales teams. - 4 years director of 3 telco companies turnover $10mill+ & 45 + staff. - Business degree. - Expertise in growing revenue and sales capability across multiple channels. Ensuring profitability and growth. - Process driven. - Expertise in recruitment, financial analysis, driving best practise and results. - Anticipated involvement advisory or silent. - Individual investor.

Australia > New South Wales

$10,000 to $200,000

January 28, 2012

Here for start-up companies in need of capital and fundraising. Expertise in small businesses and currently a franchisee.

Australia > Queensland

$1,000 to $50,000

January 27, 2012

I have owned businesses in the UK and USA and now have moved home to invest in Australia I currently live and work i brisbane. My experience is in property and sales businesses but my scope for new investments is very broad. I am an individual investor who would prefer a silent involvement in a company but would offer my skills to the company if required.

Australia > New South Wales

$1,000 to $200,000

January 25, 2012

Family Man in Sydney. Good knowledge of the building game and trained in sales. Anticipated involvement hands-on or advisory.

Australia > South Australia

$0 to $50,000

January 25, 2012

Director of telecommunications company. Property investor.

Australia > Victoria

$1,000 to $100,000

January 24, 2012

38 yrs old, My diverse background has lead me to media solution sales, my latest venture was to launch a print and online media enterprise. With the first year’s turnover exceeding 3.5 million and the second heading in a higher direction I'm confident in my ability to analyse and understand beneficial opportunities, where if need my business acumen can be utilized.

Australia > New South Wales

$100,000 to $500,000

January 23, 2012

A chartered accountant by profession with bachelor of commerce and accounting degrees. Experience in a variety of industries, from services to manufacturing and hospitality. Worked for 13 years as financial director in the service industry . For past 11 years have provided financial consulting service. Have balanced portfolio of investments, both locally and offshore. I would prefer hands on involvement in the projects in invest.

Australia > New South Wales

$10,000 to $1,000,000

January 23, 2012

Sydney based investor with background in financial services and web- development. Previous experience includes mortgages, fraud protection, web-development and real estate. Educated in Manchester, UK with high school and A Level qualifications. Looking at exciting opportunities chiefly within internet and web-based ideas with optional hands-on, silent or group investment with existing partners.

Australia > New South Wales

$20,000 to $50,000

January 23, 2012

27 year old builder/developer. Most of my time is spent investing and constructing residential housing . Looking to invest some of my profits into new industries. I wouldn't mind a hands on role into any potential investments. I am an individual investor.

Australia > South Australia

$0 to $250,000

January 22, 2012

Experienced retail manager with a successful land development background. Looking to invest in new ideas and developments.

Australia > Queensland

$1,000 to $15,000

January 21, 2012

I am 44 years of age, married with 5 young children and live in Brisbane. I have extensive experience in banking but currently work for the Queensland government as a public servant. I am looking to be involved in investing in business and am happy to operate as a silent partner but happy to be more hands-on if necessary.

Australia > New South Wales

$1,000 to $100,000

January 18, 2012

I am a corporate banker with experience across a broad range of industries. I have worked on both ends of the spectrum - hugely successful businesses and turning around companies. I am happy to play either an active or passive role as an advisor or silent investor.