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James Millar
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Peter this is an interesting topic and you aren’t alone in your thoughts – the Australian early stage funding market is pretty ordinary and much of this problem comes down to supply and demand for equity finance in this category. We simply have a much smaller pool of available funds for investments with this risk profile and as a result is that deals are pretty thin. I don’t have the per capita adjusted numbers but I’d hazard a guess that the US market pumps a disproportionate percentage of funds into this space.

The worse part here is that the founders invariably have to accept less favourable deal conditions which effects their personal reward. Supply and demand I’m afraid.

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