With business and consumer confidence languishing, it would be logical to think that investor confidence would be similarly depressed. However, according to a recent survey of 4,169 Australian investors conducted by Wholesale Investor, investor sentiment is buoyant.
The statistics revealed:
- 76% of investors are seeking investment into private companies
- 53% have $500k or more to invest
- 72% believe now is a great time to invest
- 79% of investors have over 50% of their funds in cash, ready to invest
- 91% would invest in an early-stage/start-up if a strong Board / Management was in place and in the preferred sector
- 55% said their biggest challenge was finding suitable deals
- 63% were looking to invest directly into companies
- 61% sought an equity stake of less than 20%
In addition, the survey revealed several positive factors influencing the private company market. These include:
- Former MDs and CEOs are now actively pursuing high-growth businesses.
- Many smaller venture capital and private equity firms are forming and looking to gain exposure to high quality companies.
- Larger private firms are taking advantage of market conditions and looking to make strategic acquisitions.
Contrary to the prevailing attitude of doom and gloom, these figures reveal that this is a golden period for business – for those investors and entrepreneurs who are prepared to see the bigger picture, take a calculated risk and back themselves. A crisis for some is a blessing for others.
Read the survey results here (PDF).