March 2010
Wholesale Investor National Investor Survey Wholesale Investor Database Breakdown Anonymous online survey conducted first quarter 2010 to entire Wholesale Investor registered database of 5,450 individuals.
Professional 7.0%
Venture Capital 5.0%
Private Equity Professional 12.0%
Private Investor 45.5%
CEO / Entrepreneur 30.5%
What Kind Of Investments Are You Seeking 68.4%
55.8% 37.9%
32.6%
Private companies
Pre-IPOs
ASX listed companies
Property deals
6.3%
9.5%
Managed & w holesale funds
Offshore deals
Note: respondents could select up to 3 choices.
How Many Investment Proposals Do You Review Before You Invest In One 25.3%
25.3% 16.8%
Key point: 64.2% of investors review between 10 and 30 opportunities before they invest in one.
13.7%
8.4% 1.1% 5 proposals
10 proposals
15 proposals
20 proposals
30 proposals
40 proposals
4.2%
5.3%
50 proposals
More than 50 proposals
Approx Size Of Your Investment Portfolio Key point: 48.4% of investors have a portfolio valued at between $500k and $10 million
41.1% 26.3% 12.6%
Up to $500,000
$500,000 to $1m
9.5%
$1m to $5m $5m to $10m
7.4%
$10m to $50m
2.1%
0.0%
0.0%
1.1%
$50m to $100m
$100m to $500m
$500m to $1bn
$1bn or more
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March 2010
In The Past 12 Months, Which Sectors Have You Invested Into Financial / professional services
32.6%
Property / Construction / Housing
28.4%
Internet / IT
25.3%
Green tech/ cleantech
22.1%
Mining / Mining services
21.1%
Biotech / Lifesciences
12.6%
Telecommunications
12.6%
Healthcare / Pharma
11.6%
I have not invested in the last 12 months
10.5%
Education / Training
10.5%
Media
9.5%
Leisure / Entertainment
8.4%
Import / Export / Wholesale
7.4%
Food / Hospitality
7.4%
Other
5.3%
Transport
5.3%
Industrial / Engineering
5.3%
Retail
4.2%
Manufacturing
4.2%
Key point: Top sectors which have received funding over the last 12 months are: Financial Services; Property; Internet/IT; Greentech and Mining.
2.1%
Automotive
Note: respondents could select more than one option.
How Many Companies / Deals Are You Currently Invested Into, Or Have A Stake In Key point: 60% are currently invested into 3 or more investments
38.9% 31.6%
16.8% 11.6% 1.1% 0
1-2
3-4
5 - 10
10 and above
What Is Your Approximate Total Net Wealth ($AUD) 33.7%
Key point: 66.3% have a net worth of over $1 Million. 25.3% are worth more than $5 Million.
26.3% 16.8%
14.7%
4.2%
Up to $1m
$1m - $3m
$3m - $5m
$5m - $10m
$10m - $20m
2.1%
1.1%
1.1%
$20m - $50m
$50m - $100m
$100m and above
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March 2010
Which Description Best Describes Your View On The Current Investment Environment 43.2%
Key point: 94.8% believe now is a good time to invest. 23.2% believe now is the best market they have ever seen and are seeking investments right now.
28.4% 23.2%
4.2% Now is the best time to invest that I have experienced
Now is a very good time to invest
Now is an OK time to invest
1.1%
Now is not a good time to Now is the w orst time to invest invest that I have ever experienced
Approx What Percentage Of Your Investment Portfolio Is In Cash At The Moment 34.7%
Key point: Funds continue to be deployed into investments. Less that 21.2% have 50% or more of their funds still in cash compared with 79% in May 09.
15.8%
13.7%
9.5%
9.5% 5.3%
5.3%
3.2%
2.1%
80 - 90%
90 - 100%
1.1% <10%
10 - 20%
20 - 30%
30 - 40%
40 - 50%
50 - 60%
60 - 70%
70 - 80%
In Your Opinion, Which 3 Sectors Will Experience The Most Growth In 2010 44.2%
Green tech/ cleantech
41.1%
Mining / Mining services 32.6%
Property / Construction / Housing
29.5%
Internet / IT
26.3%
Financial / professional services Biotech / Lifesciences
21.1%
Healthcare / Pharma
21.1% 14.7%
Education / Training Other
9.5%
Media
9.5% 8.4%
Food / Hospitality Leisure / Entertainment
7.4%
Telecommunications
7.4%
Industrial / Engineering
7.4% 4.2%
Transport Retail
3.2%
Import / Export / Wholesale
1.1%
Automotive
1.1%
Key point: Greentech, Mining, Property, Internet Financial Services and Healthcare are the sectors that investors are seeking to invest into right now.
Note: respondents could select up to 3 choices.
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March 2010
What Are The Top 3 Mistakes Companies Make When Pitching For Your Investment Capital Valuation too optimistic
49.5%
Financial projections too optimistic
46.3%
Lack of management expertise
45.3%
No defined exit strategy for investor/s
36.8%
Wrong business model for grow th
28.4%
Poor or no business plan
24.2%
Business model too complex
22.1%
Poor product or service offering
17.9%
Out of date w ebsite and promotional material
8.4%
Corporate structure too complex
8.4%
Lack of financial planning
8.4%
Key point: Entrepreneurs need to improve their skills and knowledge in the areas of valuations, financial projections, management expertise and exit.
Note: respondents could select up to 3 choices.
Where Do You Get Your Australian Financial, Business And Investment Information From 69.5%
Financial Review 37.9%
BRW
36.8%
Other 22.1%
The Australian
21.1%
Bloomberg
18.9%
ABC Business New s (Lateline Business)
15.8%
businessspectator.com.au Sky Business New s
13.7%
new s.com.au
13.7% 12.6%
Google New s
11.6%
smartcompany.com.au Smart Investor
8.4%
afr.com
8.4%
Reuters Yahoo Business Sw itzer
6.3% Key point: Financial Review still leads the way for investors as the leading source of information.
4.2% 2.1%
Note: respondents could select up to 3 choices.
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March 2010
Of The List Below, Which Are Your Preferred Investment Instruments Key point: Investors are still mostly focused on making direct investments into ordinary equity.
81.1%
22.1%
Direct Equity (ordinary shares in the company)
Convertible Notes (debt that converts to equity)
9.5%
6.3%
Redeemable Preference Shares
Ordinary Debt
Note: respondents could select more than one option.
For Further Information Please Contact … •
Michelle Smith
Email: m.smith@wholesaleinvestor.com.au
Office: 1300 597 595 Mobile: 0410 116 257
About Wholesale Investor … Wholesale Investor is a Capital Raising solution for Private Companies. Through a subscriber only magazine and website, we provide high net worth, CEO's and professional investors with direct exposure to private investment opportunities who are seeking capital. Wholesale Investor is the largest platform of its kind in Australia with over $300 million of capital being sought, and over 5,000 registered investors on our database. Wholesale Investor provides a business introduction service in accordance with ASIC Class Order 02/273 (Class Order) which provides an exemption to the disclosure requirements under section 708 of the Corporations Act (Cth) 2001 (Act). This allows unlisted companies to raise up to $5m without a prospectus. For more information, please visit www.wholesaleinvestor.com.au
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