The main reasons for the Australian Business Growth Fund Small are:
- Security – businesses find it difficult to obtain finance other than on a secured basis – typically, against real estate.
- Additional Funding – small businesses that have already obtained finance secured against real estate, but wish to continue to grow, also find it difficult to access additional funding.
- Funding Costs – even when small businesses can access finance, funding costs are higher than they need to be
- Control – Many small businesses find it difficult to attract passive equity investment which enables them to grow without taking on additional debt or giving up control of their business.
The Australian Business Growth Fund seeks to invest between $3 million to $20 million in dynamic mid-market companies with $5 million or more in annual revenue, a demonstrated growth trajectory, and a clear vision for accelerated growth.
The Australian Business Growth Fund targets growing companies across industries based on the following criteria:
- Revenue – $5 to $100 Million
- Equity – 10% to 40%
- Management – Entrepreneurial focus
- Investment – $3 to $20 Million
- Location – Based in Australia
- Growth – Significant expansion opportunity
- Leverage – Less than 50%
- Business type – Post start-ups and proven business models
In order to obtain funding from the Australian Business Growth Fund, you will need to be able to answer the following questions:
- What is your name and contact details?
- What is the company name?
- Where are you located?
- How old is the company?
- What industry sector is the business in?
- Tell us a bit about the business and why you’re looking for funding?
- What is the company turnover?
- What is the company profit?
- What is the expected growth rate over the next 3 years?
- How much are you looking to raise?
- What has been the source of funding to date?