Business Angels News

Pioneers who beat the odds

Mon, 20 Jun 2011 15:36:58 +1000

Angels investors assisting pioneers to beat the odds.

Does Microcredit Work?

Sat, 9 Apr 2011 17:06:07 +1000

Read about Muhammad Yunus's Grameen Bank from which he has been sacked.

Growth Industries in 2011

Wed, 2 Feb 2011 09:33:57 +1100

We have businesses in these industries looking for investors.

The Meaning Organisation

Thu, 20 Jan 2011 16:28:58 +1100

Umair Haque says:
" it's the behavior of industrial age institutions — corporations, banks, governments — that's the invisible fist of this great crisis. Instead of creating enduring, authentic value for people, they're consistently, systematically, one might say habitually extracting wealth from them — and the result is the game of musical chairs writ large that is this crisis."

Inventors should be encouraged and backed.

Sat, 27 Nov 2010 09:55:54 +1100

Read this article about inventors contributing $12b to the economy each year.

Local is the new global, so why aren't we taking advantage?

Thu, 16 Sep 2010 07:19:01 +1000

Great story, excellent question.

Term Deposits make a comeback

Mon, 6 Sep 2010 15:21:06 +1000

Angel Investments are also more attractive now. Some investors have recognised the real potential of investing their time and money in a business they can see and touch.

Novel private equity fund raising

Tue, 24 Aug 2010 16:30:35 +1000

Read the article in the Financial Review August 24 page 43 about The Stream Group raising one million dollars through our service.

Babcock and Brown debacle

Sun, 25 Jul 2010 18:21:20 +1000

I rarely comment on issues like this but reading this press article makes me wonder about many things.

Higher Learning Event

Fri, 4 Jun 2010 12:00:18 +1000

An event to take you into the reality of the fashion industry and deliver you the tools needed to make it in one of the hardest industries in the world.
We encouraged Alec Lynch to speak about his experience finding angels investors for his business.

I salute you Jessica Watson

Sat, 15 May 2010 18:09:25 +1000

Hero or not, Jessica Watson has shown us that if you really want to do something it is possible. She is a role model for all entrepreneurs, and all investors, no tricks, just the real thing.

ragtrader Money Matters

Wed, 12 May 2010 15:49:49 +1000

Read about angel finance in this months edition of ragtrader

Wide Calf Boots finds angel investor here.

Fri, 16 Apr 2010 10:11:21 +1000

Roger Langley and Amanda Bennetts are a great team. Roger's background in fashion and recruitment enhances Amanda's business acumen.

DesignCrowd finds AngelCrowd

Fri, 4 Dec 2009 13:41:32 +1100

Young entrepreneur finds not one but four angels investors, three from our database.

Silver Lining to Downturn

Wed, 8 Apr 2009 12:17:56 +1000

Read these comments on ABC catapult.

Angel investors spread wings

Tue, 24 Feb 2009 14:01:08 +1100

See Australian Financial Review page 46

Divine Intervention - BRW 19 February 2009

Thu, 19 Feb 2009 08:49:30 +1100

Read some of my comments about angel investing being the new black.

Are Angels investing?

Tue, 28 Oct 2008 12:33:43 +1100

The question on everyone’s lips is, “Are angels investing?” Yes, this is an excellent time to invest in growing businesses. Who would invest in the stock market? Furthermore, has investment in the stock market out-performed investment in innovative companies anyway we might ask? It is interesting to contemplate how investing in an Australian company is perceived to be riskier than investing in the stock market.

The current financial climate provides an excellent platform for smart companies to attract the right investor. When things are not so frantic (and automatic) everyone has more space to evaluate each other and make sure that they have the right partnership. There is great value in meeting together rather than picking over lists.

It is also an excellent time for angel investors to re-evaluate how they want to put their resources to use. Perhaps more Australians will consider supporting our clever innovators. Then we could be a better showcase to the world, which sadly we are not.

It could be time for everyone, those with money, and those needing money, to re-evaluate their goals. There can be no greater satisfaction than working with a team of dedicated entrepreneurs who are able to respond to a need in the market. For those without business ideas angel investing is the other way to participate.

The current climate can also be a time for reassessing our values. Do we place a higher value on what we contribute or on what we can receive? Angel deals fall over because self interest outweighs the vision of what both parties can do together as a team. There is no question that we all need a greater vision about our economy to avoid, to put it simply, the habitual overvaluations and devaluations.

Fees waived for Angel Investors

Fri, 18 Jul 2008 19:09:08 +1000

To attract more investors to our database we made the decision to allow investors to register free of charge.

For your perfect partner just list your details here

Thu, 24 Jul 2008 19:03:25 +1000

Sarah Hanley writes about us in the Financial Review Venture Capital Report 24 July 2008

Back me up

Sat, 28 Jun 2008 12:21:47 +1000

Running a business without the necessary backing is no mean feat, but there are ways you can get investor to show you the money.
Read the article in the July edition of Dynamic Business for Growing SME's

Valuing your business

Thu, 22 May 2008 13:22:35 +1000

If you own a business or have ever had a great business idea, you've no doubt wondered about it's value. You might be thinking about selling your 'baby' (preferably for a windfall) or looking for an investor to get your latest 'brain-child' off the ground. Either way, the question remains: What's a fair value for your business or idea? Or is a business only ever worth what someone else will pay for it?

Get the latest copy of Anthill to read Christine's frank interview about angel investors.

Mon, 17 Dec 2007 16:14:01 +1100

It has been noted, somewhat dryly, that to accurately gauge business angel investment dealflow one would have to frequent every café and backstreet bar in the country. In Australia, angel investors inhabit the frontier terrain that lies between the three ‘F’s – Family, Friends and Fools – and serious early-stage venture capital. With rich returns to be found currently in lower-risk investment sectors such as property and commodities, entrepreneurs seeking capital could be forgiven for thinking that angels are as elusive as the Tooth Fairy. We tracked down three professionals who connect angels to investment opportunities and asked them about the state of play.

The Industry still has a long way to go

Fri, 30 Nov 2007 17:52:11 +1100

Get the latest edition of Anthill :
As founder of the oldest business angel matching service in Australia, Christine Kaine thinks the industry still has a long way to go. She has described the process of angel investors and entrepreneurs finding each other as a giant game of hide and seek, with both parties blindfolded.

Heavenly help for entrepreneurs

Thu, 13 Sep 2007 13:24:23 +1000

Heavenly help for entrepreneurs Monday, 10 September 2007 Freya Purnell BECOMING an 'angel investor' in growing businesses can be both personally and financially rewarding, but control freaks take note – it's not for everyone. If you have a bit of money to invest and don't fancy kicking around the house or taking up golf fulltime after you sell your own business or give up corporate life, becoming an angel investor could be for you. The basic proposition is this: you find a growing business that needs capital and a helping hand. You invest some money, which could be anything from $25,000 up to $1 million, take up a position on the board and as a mentor or coach to the entrepreneurial team, and enjoy the ride. Tom McKaskill, a professor at the Australian Graduate School of Management, says, "Angels get to participate in the strategy and all the major decisions, but they've got someone else doing the execution, so it's almost like they get all the fun with someone else turning the wheel. It's not just about the return on the money, it's also the active involvement in something that's interesting and making a difference." For Tom, who has experienced the ups and downs of being an angel firsthand, this was a major attraction. "It was working with some different people who were having a go and trying some new business concepts – so it was a lot of interesting conversations and then following the business along," Tom says. His first two forays into angel investing, a community bank and an independent supermarket, were successful. But his third, a travel agency, went bust and he lost his money. "But that's the nature of the game," he says. Around 50% of ventures with angel investment fail, compared with 20-30% of businesses with venture capital. This could be because angel investors typically get involved earlier in the business' life, when the risk is higher – but this also means that returns can be very good. Venture capital firms tend to take a more controlling role in the businesses they invest in – which is very different to the way the angel/entrepreneur relationship should work. The ideal is really a mentoring or coaching relationship, but Tom says it can be tough to keep your hands off and let entrepreneurs make their own mistakes. They then can learn from the experience, even if it costs the business money. "And it's only people who have been there and know they have made mistakes and come through it, that are really able to sit back and let things happen." Christine Kaine, founder of Business Angels, says she has become concerned that many angel investors are entering into relationships with the wrong attitude. "Some of these investors interfere in businesses in ways that they should never, and they trespass on the entrepreneur," Christine says. "I think self-interest is the devil in this process. People need to get over themselves and look outside to see the other benefits. And it can be quite thrilling to think you're making a difference." Having said that, angels should still keep an eye on the prize, says Tom. "If you keep a focus on the return, you'll be much more diligent in your investigation, in the advice you're giving and the direction you're going; if you compromise on that and say let's just have a good time, I don't think you are doing a service to the entrepreneur." Tips for prospective angels Do your due diligence, and don't put all your eggs in one basket – invest in a range of perhaps 6-10 companies to increase your chances of a good return. Stick to industries or businesses you understand – find the right opportunities through personal contacts or angel networks. Make sure there is a good fit between you and the business in terms of skills and personality. Don't try to take control of the business, but see your role as a mentor or coach. "If you take too much control, you take away the motivation from the entrepreneurial team," says Tom. Be prepared to write some investments off – they won't all work. Where to find out more There are several sites dealing with the subject. Try www.businessangels.com.au

Creativity and cash a beautiful match

Thu, 6 Sep 2007 09:35:31 +1000

JOSHUA Frydenberg's article "Innovation is the key to our future" (Opinion, 5/9) is of critical importance. Failure to deliver a radical upgrade in the national innovation environment will constrain our capacity for productivity growth and result in a decline in international competitiveness."

Asking governments, large corporations and elite venture capitalists to deliver change to the innovation environment is not the answer. Otherwise it would have happened by now.
Individual human beings, each one of us, can bring about this change. Some of us are very creative and some of us have a lot of money. Why is it so hard for those with a lot of money to back those with the creative ideas?
I have been introducing angel investors to extremely creative entrepreneurs for the last 15 years and too few investors have the gumption to fully support the many creative Australians with the ideas. Fear of loss, of both money and control, are the real barriers. A cultural shift is required so that we celebrate those with vision as much as we celebrate those with money.
Christine Kaine
The Age, Letter to the Editor 6/9/2007

Innovation IS the key to our future

Wed, 5 Sep 2007 11:27:23 +1000

Joshua Frydenberg explains some of the problems facing innovators but he doesn't reveal the real problem. Those with money must back those with ideas fearlessly. The economy is awash with money, pour some of it into the many brilliant ideas advertised on this website and elsewhere. The government won't change the uptake of innovation - they haven't so far. The Innovation Summits in 2006 showed that Australia has not innovated for 10 years.

Growing the seed capital

Fri, 31 Aug 2007 13:59:24 +1000

Private Equity solutions for business growth gaining more attention.

Send me an angel

Tue, 7 Aug 2007 15:54:47 +1000

Australia is awash with money. But that’s not made finding investment dollars any easier.

Assistance with cash flow

Wed, 18 Jul 2007 11:42:40 +1000

Glen Eira council, Caulfield, Victoria assist their local business women to run better businesses.

Small Business, Big Opportunity

Sun, 20 May 2007 18:59:35 +1000

See how Sensis is assisting small business to aspire, to be creative and to find the right ingredients to succeed.

Read about a newly matched business and investor

Tue, 20 Feb 2007 11:04:19 +1100

Entrepreneur, a regular supplement of The Australian, this Friday, February 23, tells the story of a successful match.

Over $30,000 in cash & prizes for your innovation

Tue, 13 Feb 2007 16:59:33 +1100

See the 2007 Next Big Thing Award - you could be a winner.

Will this give investors more protection?

Thu, 1 Feb 2007 11:29:48 +1100

Court drops shareholder bombshell Email Print Normal font Large font Leon Gettler February 1, 2007 A landmark High Court decision, which backs the bid of a shareholder in failed miner Sons of Gwalia to be treated as a creditor, could potentially clear the way for hundreds of similar claims. For example, it could allow shareholders of failed car parts maker Ion, which was put into administration in 2004, to argue their case against the company as unsecured creditors. In that class action, lawyers claim Ion knew of the financial impact of cost overruns and construction delays at its new factories but failed to disclose that information to the market. The shareholder at the centre of the Sons of Gwalia case, Luka Margaretic, lost $26,288 after investing in the West Australian miner 11 days before it went bust in August 2004, leaving his shares worthless. Yesterday's decision backs last year's Federal Court ruling that overturned the long-standing view and practice that shareholders ranked behind unsecured creditors in claims on a failed company. The 6-1 ruling could also throw the insolvency industry into disarray. By introducing a new class of creditor, it could delay returns to general creditors and see them receiving less. Lawyers said yesterday it could also allow shareholders of failed companies to block repayment or reconstruction plans, making it more difficult to make them solvent again. Leon Zwier, a partner with Arnold Bloch Leibler, said it would increase costs for receivers and stretch out the process of reconstruction. "You create a whole raft of unsophisticated creditors who might have a different agenda from that of financiers and suppliers of goods and services. It might make it impossible to maximise the chance of the company staying in business." But John Walker, the managing director of insolvency litigator IMF, which funded Mr Margaretic's action, said creditors had similar agendas. "A creditor is a creditor". David Cowling, a partner with Clayton Utz, said there was a good reason why shareholders always took the back seat to creditors. "While the company is a going concern, shareholders share in its profits without any personal liability for its debts. In return for that upside, they accept that, if the company goes broke, the money they've invested in the company is used to pay its creditors and its employees." Ian Ramsay, director of the University of Melbourne's centre for corporate law and securities regulation, said Parliament could be asked to revisit and clarify the law. "I wouldn't be surprised if some key stakeholders call for a process of law reform or at least a review of the law." Mr Margaretic had claimed that the company had breached the continuous disclosure rules by failing to notify the market that its gold reserves were insufficient to meet delivery contracts. Mr Margaretic said yesterday that while he had taken a risk as a shareholder, the company had failed to disclose critical information. "Your risk is in the company performing or not performing, but you are not taking the risk of the company not performing at all." In 2005, the Federal Court ruled that Mr Margaretic should be paid out with other unsecured creditors. Sons of Gwalia administrators appealed against the decision. When it was dismissed by the full bench of the Federal Court, Sons of Gwalia and creditor ING appealed to the High Court, which yesterday rejected their appeal. Under section 563A of the Corporations Act, shareholders, or "members" of failed companies rank behind creditors. But in his part of the ruling, Chief Justice Murray Gleeson said section 563A did not "embody a general policy that, in an insolvency, 'members come last' ". He said there was a difference between Mr Margaretic bringing his action as a shareholder or some other capacity. "His claim would be no different if he had ceased to be a member at the time it was made, or if his name had never been entered on the register of members." Latest related coverage High Court of Australia ruling Other related coverage High court rules shareholders can be treated as creditors STEPHEN BARTHOLOMEUSZ High Court decision opens can of worms for handling large-scale insolvencies JOHN WALKER Ruling on Gwalia reinforces existing shareholder rights SHAREHOLDERS who feel they have been hoodwinked into buying shares in failed companies now have a better chance of clawing back their money.

Business Angels - the next level

Sat, 25 Nov 2006 08:53:19 +1100

A Swarm of Angels updates the current filmmaking models of Hollywood and independent film to create cult cinema for the digital age.
Whether you call it Cinema 2.0, or Open source cinema, it’s an innovative participatory experience you can be part of.
Our vision is to bring filmmaker and fan together into entertainment communities making distinctive films based on artistic choices not marketing ones. This is not about making a couple of bucks, but about making cinematic history.

Buy a piece of history for AU$64

Due Diligence

Sun, 12 Nov 2006 11:24:13 +1100

Be sure to buy the Financial Review on Thursday, November 16, for some hot tips about due diligence.

Exit Strategy Workshop with Tom McKaskill - Melbourne 9th November 2006 - Book Now

Mon, 30 Oct 2006 13:37:49 +1100

Few owners prepare their business for sale and yet increasing the value of a conventional business by several times is highly achievable. For businesses which correctly prepare their business for sale, achieving 2 to 10 times a conventional value is highly achievable.

Recognised as the worlds leading authority on Exit Strategies, Professor McKaskill has developed specific value creation strategy for enhancing the sale value of a conventional business. This workshop is a must for any entrepreneur or business owner who is seeking venture capital, or looking to exit in the next 1 to 5 years.

To request more information about this workshop, please email reuben@teldar.com.au

Bangladesh economist wins Nobel Prize

Sat, 14 Oct 2006 12:51:14 +1100

Bangladeshi economist Muhammad Yunus and the Grameen Bank he founded won the 2006 Nobel Peace Prize for grassroots work to lift millions out of poverty that earned him the nickname "banker to the poor".

Yunus, 66, set up a new kind of bank in 1976 to lend to the neediest, particularly women, in Bangladesh, enabling them to start up small businesses without collateral.

In doing so, he pioneered microcredit, a system copied in more than 100 nations from the United States to Uganda. UN Secretary-General Kofi Annan, presidents and prime ministers hailed the award, the first Nobel Peace Prize to a Bangladeshi.

"Eradication of poverty can give you real peace," Yunus told reporters at his home in the Bangladeshi capital, Dhaka, after he won from a field of 191 candidates.

"Now the war against poverty will be further intensified across the world. It will consolidate the struggle against poverty through microcredit in most of the countries," he said. "There should be no poverty, anywhere."

In awarding a prize more traditionally given to those who sign treaties to end wars or fight for human rights, the secretive five-member Norwegian Nobel Committee said eliminating poverty was a path to peace and democracy.

"Lasting peace cannot be achieved unless large population groups find ways in which to break out of poverty. Microcredit is one such means. Development from below also serves to advance democracy and human rights," the committee added.

The academic and his bank were surprise winners of the 10 million Swedish crown ($A1.81 million) award to be presented on Dec. 10 in Oslo.

Returning from a Fulbright scholarship in the United States, Yunus was shaken by the 1974 Bangladesh famine and headed out into the villages to see what he could do.

He found the region's women in severe debt to extortionate moneylenders. His initial goal was simply to persuade a local bank manager to give villagers regular credit, but the banker said that was impossible without a guarantee.

Yunus set out to prove him wrong and never looked back. Grameen - the word means "village" or "rural" in the Bangla language - has lent $5.72 billion since it began. Of this, $5.07 billion has been repaid.

The bank, which has turned a profit in all but three years, lends to 6.6 million people, 96 per cent of them women, and has not received donor funds in eight years. It counts beggars among its members, giving them interest-free loans and life insurance.

Members are not required to give up begging, but encouraged to work. Today the bank is 94 per cent owned by the rural poor it serves and 6 per cent by the state. Yunus is managing director.
Nobel Committee Chairman Ole Danbolt Mjoes told Reuters: "This idea was generated in a mostly Muslim country and then fantastically spread to the whole world in a positive way."

Bangladeshi Prime Minister Begum Khaleda Zia said the award would "play a great role to uplift the image of the country".

Annan, himself a Nobel peace laureate, hailed Yunus and Grameen Bank as "long-standing allies of the United Nations in the cause of development and the empowerment of women".

The Dalai Lama, prize winner in 1989, told reporters in Rome: "(Bangladesh) has a lot of problems and a lot of poor people. It is very good that there is a prize for individuals who are really dedicated to poor people."

United Nations High Commissioner for Human Rights Louise Arbour hailed Yunus and his bank as being ahead of their time. "Happily, the links that he made between development and human rights are now part of the international discourse," she said.

First awarded in 1901, the peace prize has evolved to include the defence of human rights and the environment.

The 2004 award went to Kenyan environmentalist Wangari Maathai for a campaign to plant trees in Africa. Last year's choice of the International Atomic Energy Agency and its Egyptian head Mohamed ElBaradei was more in line with dynamite millionaire Alfred Nobel's original intent of disarmament.

Not all observers have appreciated the apparent shift.

"This should be a prize for peace, or for encouragement to stay the course - as it was in my case, when it put more wind in my sails," 1983 Nobel peace laureate Lech Walesa told Polish television. "Perhaps the name of the prize should be changed to those who work to eliminate (economic) differences?"

©AAP 2006

Capital Raising Conference - Melbourne 28th & 29th October 2006 - Book Now

Thu, 14 Sep 2006 16:52:28 +1100

There are millions of dollars of investor capital available in Australia, ready to back the right business. Knowing where it is and how to gain access to it, is an invaluable asset to any entrepreneur, CEO or business person.

The Capital Raising Conference offers a unique opportunity to learn this priceless information from some of the most knowledgeable minds in the Capital Raising industry.

From building your brand, increasing market share, making acquisitions, international expansion and even listing on the stock exchange, access to capital is the key ingredient.

Register now for this unique event - places are limited.

Melbourne Herald Sun

Sun, 20 Aug 2006 13:17:04 +1100

Buy the Melbourne Herald Sun Saturday 18 August to read a feature story on Business Angels.

Banks still the best for dreamers [if you own property]

Tue, 11 Jul 2006 16:10:37 +1100

See Financial Review 11/7/2006 - Enterprise page 47

Business Angels on Saturday Extra with Geraldine Doogue

Mon, 19 Jun 2006 14:27:43 +1100

Saturday July 1 at 7.30am
Saturday Extra brings you a lively array of stories and features covering a range of topics including international politics and business.

Business Angel climate

Thu, 1 Jun 2006 18:50:26 +1100

Business tyros lean on investors with angelic qualities and money to burn
SPECIAL REPORT Enterprise Quarterly

Thursday 1 June 2006 by Nina Wan
Many small businesses owe their existence to the support and assistance they received from a certain type of angel, says Nina Wan.
Angels work in mysterious ways and business angels are no exception.
In the area of small-venture investments, there is little data to shed light on the number of angel investors or on their collective worth.
This is an indication of the often private nature of arrangements between business angels and the small businesses in which they invest.
But it is clear that angel investors perform an important role in funding the growth or establishment of small businesses; aiding that bright (or ultimately doomed) idea that an aspiring business person cannot cultivate alone.
According to the founder and former director of the Australian Venture Capital Association, Robert Inglis, angel investors tend to invest between $50,000 to $1 million in small businesses - although there are cases where some have invested up to $5 million.
Quite often, an angel will be one of the three Fs: family, friends or fools, with the last representing the many investors who put money into a business knowing they may not get it back.
But why entertain the prospect of financial suicide?
Usually it's because a business idea may simply prove so irresistible and resonate so well with an angel's own hobbies or pursuits that they feel they have to take the plunge.
"Some people do it because they're infatuated with the idea," Australian Private Equity and Venture Capital Association's chief executive, Andrew Green, says.
For Stephen Rickwood, who invests between $50,000 and $550,000 into small businesses, the idea behind a business plays an important role. "Like most, I buy a good story," he says. "Especially if the story aligns to the things I believe in. For example, I am invested in a venture that enables households to recycle their grey water."
According to Christine Kaine, who runs an online matchmaking service for angels and fund seekers, many angel investors who have honed useful skills through their own working lives and investment experiences are motivated by the need to put something back into the community.
Rickwood, for example, admits to being a romantic.
"If a young business can use the grey hair I've got from building a small business into a large one, then I'm delighted," he says.
But no-one is suggesting angel investment is all altruism. Angels, like any other type of investor, play the risk and return game. They recognise that small ventures have substantial potential but also substantial risks.
Robert Pattinson began to invest in other people's businesses after moving to Australia from Britain, hoping to generate immediate returns without having to start his own company from scratch.
But as he found, the road to success was anything but easy.
An investment of around $150,000 (made with a co-investor) into a security camera business was lost in an earlier venture.
As well as risks that are peculiar to each individual case, an array of other factors can deter investors.
For one, it may be difficult to eventually exit an investment as there are no secondary markets where shares in the business can be readily traded.
In the past, Australian tax rules have provided little encouragement to angel investors and have not matched the risk profile they face.
For instance, when a small enterprise failed, an angel investor may have to wait years to claim a loss for tax purposes because of the protracted nature of the liquidation process.
In contrast, stockmarket investors are able to cystallise a loss immediately by selling their shareholdings.
But the May federal budget has provided some positive incentives for angel investors who put their money behind start-up companies.
New tax changes provide an exemption to income or capital gains tax on investments in a newly introduced investment vehicle known as early stage venture capital limited partnerships.

Angel Aid
· Business angels play an important role in helping small businesses get established.
· Often angels invest because they are infatuated with the business idea.
· New tax changes provide an exemption to income or capital gains tax on investments in a newly introduced investment vehicle.

Congratulations Wotif.com

Wed, 26 Apr 2006 13:54:42 +1100

Wotif.com to reward its backers

By Rebecca Urban, The Age
April 26, 2006

EARLY backers of the fast-growing online accommodation booking service Wotif.com will be richly rewarded when it floats on the stock exchange in June, potentially pocketing up to $172 million.

Co-founders Graeme Wood and Andrew Brice, plus a handful of seed investors who reportedly pitched in a combined $200,000 six years ago, will offload part of their holdings to new investors through the initial public offer.

According to the company's prospectus, founding chairman Kevin Fitzpatrick will glean the most through the sale, earning up to $73.6 million by reducing his stake from 23 per cent to 5 per cent.

And Mr Wood, the company's founding chief executive, is set to make $42 million, while retaining a 25 per cent interest as well as his job.

Wotif.com Holdings, chaired by UNiTAB chief executive Dick McIlwain, plans to raise between $150.5 million and $172 million by transferring 85.9 million shares to new investors.

The entire proceeds from the sale will go to the existing shareholders, who will retain a 60 per cent interest in the company.

The issue price expected to fall between $1.75 and $2 a share will be decided following a bookbuild to institutions, and values the company between $355 million and $406 million.

Wotif.com is pitching itself as Australia's leading provider of online accommodation booking services in an expanding market. About 8.5 per cent of holiday accommodation in Australia is booked over the internet and that is estimated to grow to 11 per cent by 2010.

The company's strategy is to participate in that growth while increasing market share beyond its existing 36 per cent in Australia and 18 per cent in New Zealand.

"Wotif.com's low-cost, highly focused business model has consistently generated strong revenue and earnings growth since the company commenced operations," Mr McIlwain says in the prospectus, which was lodged with the Australian Securities and Investments Commission this week.

"The management team has a proven track record and a focus on continuing to deliver strong earnings growth."

The company expects to make a $15.7 million profit this financial year, with increased sales to push that to $19.1 million in 2007.

However the company will have to contend with increasing competition in the sector, after Sensis recently launched a new accommodation website called gostay.com.au. Other competitors include webjet.com.au and travel.com.au.

Wotif.com's offer to retail investors closes on May 29 and to institutions on May 31 and the company expects to be trading on the stock exchange by June 8, 2006.
KEY POINTS
¦Two of Wotif's founders will gain more than $100 million between them in the float.

¦The company expects to make a $15.7 million profit this financial year.

Company Angels

Wed, 15 Mar 2006 17:06:44 +1100

More companies are registering as angel investors. Outsourcing innovation in this way is a smart growth path. It means that the innovators get their funding, the company growths and the economy benefits.

Angel Investor Profile

Tue, 21 Feb 2006 14:04:59 +1100

High-flyer makes angelic career switch
The Australian Financial Review www.afr.com.au Tuesday 21 February 2006
By Dorothy Kennedy
Stepping off the upper rung of a tall corporate ladder early last year, BT Asia Pacific's head of marketing, Melanie Stray, went looking for a position that would cut down on her time away from home and her two young children.
"I loved my job, travelled like a lunatic," laughed Ms Stray, now 10 months into her new career as an angel investor.
"Basically, I decided I needed a job which was challenging but which was more home-based, as in within Australia."
An electronic systems engineer by training, Ms Stray left BT after 41/2 years in the telecommunications company's top regional marketing position, and a total of 15 years in the telecommunications industry.
"I'd always needed to work but basically the international travel became increasingly difficult and there wasn't another role for me at the level of seniority that I was looking for," Ms Stray said.
With a redundancy package in hand, she followed up a passing suggestion made by the consultant who handled her outplacement from BT, canvassing the possibility of angel investment as a future career.
It did not take long to find her wings and take them on a test flight.
Ms Stray has invested $135,000 in three businesses she was matched with by angel investment network Business Angels. She wanted to invest in businesses outside the telecommunications industry that made some sort of wider contribution.
She was linked to one in lifestyle improvement, an area she had specified.
Another was firmly rooted in the telecommunications and IT area she was trying to move away from.
She nevertheless met with the owner of that business, discovered he also had a stress management operation that suited her investment criteria, and agreed to invest in both.
According to Ms Stray, angel investment has allowed her to sink skills and money into her chosen companies.
"I was looking for a job as well as an investment," she said.
"I arranged with all three of my businesses that I would work in the businesses in the period leading up to my investment."
She negotiated a range of investment methods, including working for shares in one business and making an investment in the form of a loan in another, along with consultancy arrangements.
"It's well below the venture capital radar," Ms Stray said of the companies that typically seek angel investors and the amounts of money they need.
From her perspective, entering a business before it grows big enough to spark the interest of venture capitalists added an extra dash of excitement to the deal.
There have been no financial returns from her investments yet, and Ms Stray is not expecting them in the short term.
Nor is it a career for anybody who cannot support themselves by other means while their investments mature.
"I found it extremely beneficial not to need income for 12 months," Ms Stray said.
Fortunately she was safely ensconced in a household with another breadwinner to help shoulder the financial load.
This sort of safety net was important for anyone considering a shift into angel investment, she said.
"A lot of them don't deliver cash return in the early stages," she cautioned.