The Mentre workshop finished last Monday, with a presentation of investment pitches to the judges on the final day. It felt a litle bit like Australian Idol, except no-one got a touchdown and none of the judges were as annoying as that boxhead Sandilands.
So ultimately, what did I get out of the workshop?
- A presentation pitch really does improve with practice. While mine improved marginally, watching the degree of improvement in the other workshop participants was often a surprise. Practice really does help hone the pitch.
- Getting out of the bubble of your own thoughts and receiving real world feedback from knowledgeable people is extremely worthwhile.
- Not all business ideas are created equal, but people won’t always tell you what they really think. Complete honesty is rare.
- There are Venture Capitalists in Australia who are really switched on when it comes to the web and technology. Who knew?
- Raising money is hard
Parts of the workshop experience bordered on “Business planning for beginners”, but ultimately I got out of it exactly what I wanted, which was:
- Real world feedback from smart people on our business idea
- Access to investors
Overall, it was a well spent $500.
Some feedback on valuation which might be useful for those in Australia looking for funds. Without naming sources, I was told the following by people who should know what they are talking about.
Typical pre-money valuation for a start-up in Australia is between $2 and $4 million.
This doesn’t mean with just an idea you can go out and raise money on a $4 million valuation, but it at least gives you a line in the sand for your planning.
Raising $400,000 as an angel or seed investment, expect to give up around 30% in equity
To me this seems high (and I did argue against it), but then I’m not the one with the money am I.
Food for thought anyway.
