Spreading the word: Fundexa is helping to connect Australian companies with the world
Private-i
Private-i
For startups and more advanced companies alike, getting in front of the right investors at the right time can be critical.
It’s a process that can be easier said than done; often limited by geographies, or difficult negotiations over valuation and potential ownership stakes.
Within the Australian market there are a number of service providers trying smooth out the process and help free up the flow of capital.
One such player with a unique proposition is Fundexa; a user-friendly platform for companies to arrange meetings and spread the word about their business to a global network of potential investors.
Established in Sydney in 2015, founder Bill Kemmery said he started the business after spotting a niche; the lack of a road map for local companies to connect with investors outside of Australia.
The service began as a way for ASX-listed companies to link with investor relations consultants in key global jurisdictions.
“It’s now evolved into a platform to connect private and listed companies with a network of more than 10,000 investors, with access to IR consultants when required,” Kemmery told Stockhead.
Kemmery built out Fundexa’s contact book over a number of years via investor meetings and industry forums, as well as third-party databases.
He said the model can be scaled out across any sector, but the bulk of activity is centred around four industries; mining, energy, tech and life sciences.
“In tech for example, if you’ve got a great idea with global application, there are investors in 20 or 30 cities who could invest in you tomorrow. So you could start with the network in Sydney, but what about the five in Zurich and those other seven in London? You have to be able to reach them.”
While the company plays a central role in private markets, a key point of difference is that it doesn’t do so in an advisory capacity.
“It’s a logistical service. We don’t provide advice to investors or companies, we simply connect them. Each party does its own due diligence and engage their own advisors to assist with aspects of the transaction such as valuation, or the structure of the deal,” Kemmery explained.
In that sense, an effective intermediary service plays an important role in the market.
“It’s a different relationship. I”m not telling you this company is good or bad, but I’ll say ‘they’re in London at this time, they’re in a sector that you invest in — do you want to take this meeting?'”
The company derives fees from its investor introduction model “if we work with them on an extended program across a number of markets”. It also splits fees with IR consultants for investor roadshows which are booked through the platform.
“Ultimately, I think most of our clients would have been able to raise funds regardless of who they worked with,” Kemmery says.
“Fundexa just offers a simple solution to engage with investors quickly and cost effectively, outside of the company’s traditional markets where they have established relationships.”
“By being able to improve the access or increase the exposure to a different investment community is where we add most value to our clients.”