STARTUP GATHER ONLINE FORCED OVERSEAS FOR FUNDING
Written on the 15 November 2016 by Lin Evlin
SYDNEY-based social messaging tool Gather Online is partnering with New Zealand equity crowdfunding platform Equitise to raise $1 million for further technological development and marketing growth.
"We had no choice but to opt for overseas investors rather than keep Gather's successes in our own backyard," Price says.
"We did initially approach a lot of Australian venture capital firms trying to find Australian investors and we found that the Australian investment community was very risk adverse, whereas in places like the US, there is an established culture where investors will take the 'big gamble' with higher risk investments.
"(Start ups) cannot raise early-stage funding at reasonable valuations, so founders often opt rather to have less of a funding cushion instead of giving up too much equity, " he says.
"More often than not, this kills the company because technology development almost always goes over time and over budget - just like property renovations.