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WHY RAISE EQUITY?
Early-stage growth companies frequently need cash for product and market development. Successful start-ups typically raise two or three rounds of capital before they break even. For a company founder, raising cash by selling equity in your company may be a better option than mortgaging the house or selling assets. Well-chosen investors buy a share of your company and provide cash, expertise and contacts to help you build company value. The aim is to own a smaller proportion of a much bigger pie.
WHAT KINDS OF COMPANIES DOES PLAYFORD CAPITAL INVEST IN?
We invest in more than software companies. If in any doubt contact Playford Capital on 8110 1555 and talk to an Investment Manager about your specific situation.
Which industries?
Playford Capital invests in high growth, technology-based companies targeting almost any vertical or horizontal market (e.g. health, food, beverage, mining, waste processing, water, logistics etc).
What company stage?
Playford Capital invests in start-up and early-stage companies ranging from pre-sales through to sales of around $5 million.
What location?
Your company must offer economic benefit to South Australia.
HOW MUCH MONEY?
How much does Playford Capital invest?
Playford Capital makes staged investments up to $1 million. In each case, the amount invested will depend on the company’s capital needs, risk profile and access to other funds.
What shareholding does Playford Capital take?
Playford Capital takes a minority equity stake in companies. The actual percentage depends on the amount of cash invested and the agreed company valuation.
HOW DOES PLAYFORD CAPITAL’S INVESTMENT PROCESS WORK?
How are investments selected?
Investments are selected on the basis of management strength, market potential and defensible intellectual property.
Investments are subject to a formal due diligence process where we work with you and your advisers to develop an action plan for your business.
How long does the investment process take?
For successful applicants, the investment process typically takes around 12 weeks. During this time, the Playford investment team works closely with selected applicants and its advisers to develop an action plan to accelerate business growth. Playford Capital’s Board investment committee makes the final investment decision.
WHAT HAPPENS AFTER PLAYFORD CAPITAL INVESTS?
When is funding available?
We make enter into a legal agreement to invest money progressively as the company achieves agreed business milestones.
How does Playford Capital work with companies?
Playford Capital is a “value add” investor providing cash, advice and contacts. Our investment team has practical experience in growing and selling early-stage companies. In addition to taking a board role, we work actively with company management on strategy, recruitment, marketing, capital raising, business systems and exit.
How does Playford Capital exit from its investments?
Playford Capital expects to generate a return on its investment. This is typically realised via an “exit” when the company is sold to a trade buyer or a listing on a public stock exchange.
What is my next step?
Playford Capital welcomes inquiries from entrepreneurs and their professional advisers. We suggest that you contact us well before you make a formal application by lodging a business plan. Our Investment Managers are happy to meet with you to discuss funding alternatives and the steps involved in becoming investment ready. This free, no-obligation consultation can save time, money and effort down the track.
INVESTMENT MANAGERS
To learn more, contact a Playford Capital Investment Manager.
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After Playford Capital contributed $450,000 of a $2.3 million investment round for my company, Signostics, I found that Playford invests much more than money when it commits. From the time we first met the Playford Capital team, they have proven to be anything but set-and-forget investors. Playford has assisted us in a practical and detailed way, from creating realistic financial projections, assisting with recruiting both directors and staff, planning our US market entry and establishing rigorous and regular performance reporting. The Playford management team has a deep understanding of the process of early stage investment and can identify both opportunities and pitfalls.
Neil Bartlett, Chief Executive Officer, Signostics Pty Ltd The team at Playford Capital identified and presented a strong and relevant second round investment opportunity. Playford's investment criteria and assessment processes are robust. Playford does a lot of heavy lifting by working closely with companies and investors to make sure that due diligence, investment planning and strategy are all detailed and lear. I’m very confident that Playford Capital’s work, and its advice to me and the investee company, is first rate, which significantly reduces my assessment work and investment risk. Philip Alexander, CEO, Orderpoint Australia
Playford Capital has assisted our company by providing us with access to a network of people, services and capital that has supported our business growth. Those that have experienced company growth will know that the journey is both exciting and painful and requires business leaders to go the extra mile. Playford is a part of our growth team and its people will roll up their sleeves when required to assist to get an important job done. They provide a very important strategic overview that is sometimes hard to keep an eye upon as a business leader, when you’re at the front line. While choosing a partner / investor needs careful consideration, we are not disappointed with the choice we made as the Playford structure and direction has assisted our company to mature our executive procedures and strategic direction.
Tom Rooney, CEO & Founder, Waterfind |
