Self Managed Super Funds (SMSF) may be a missing piece to the innovation puzzle in Australia.
One of the problems facing many Australian start-ups and early stage companies is a lack of access to the funds they need to commercialise their technologies. If sufficient funds cannot be raised locally, these companies have two choices: go overseas (typically the USA) or manage with the very limited resources available to them – and accept a greatly increased likelihood of failure. Either result is a lost opportunity for Australia to capitalise on its educated and innovative workforce and to generate new jobs.
Start-ups and early stage companies struggle to raise debt finance and are too small to warrant the attention of large equity investors, such as fund managers and other institutional investors. That leaves Venture Capital firms, Business Angels and the three Fs – Friends, Families and Fans – as the main source of funds for these companies. Whilst these funding sources are invaluable, they are not sufficient to adequately capitalize the many innovative companies established by Australian entrepreneurs. This is particularly true in the post-GFC environment, in which VC activity is greatly diminished.
Self Managed Super Funds (SMSF) may, however, be well-placed to take advantage of the investment opportunity offered by start-ups and early stage companies and to bridge this ‘funding gap’.
“Whilst there are significant risks involved in investing in start-ups and early stage companies, the upside potential is substantial and may provide a better exposure to high-risk, high-return assets than alternatives such as derivatives, art, fine wine and fast cars,” says James Claridge at Alchemy Equities.
Claridge goes on to outline the scenario where, for example, an SMSF with over $5M in assets allocates 2% of its investment portfolio to start-ups and early stage companies - a total exposure of $100,000. An SMSF of this size would qualify as a ‘sophisticated investor’ and might be able to invest, say, $10,000 in each of 10 companies without compromising the ability of those companies to raise additional funds from retail investors under the 20/12 rule (without a prospectus, companies are not allowed to raise funds from more than 20 retail investors in any 12 month period).
By co-investing with VCs, Angels, Governments (e.g. through Commercialisation Australia grants) or other investors, for example through the Australian Small Scale Offerings Board (ASSOB), SMSFs might be able to outsource their due diligence to some extent, and at the same time reduce their exposure to companies that are not well structured or that do not have compelling business propositions or high growth potential.
The worst case scenario would be if all 10 companies failed, in which case the SMSF would have lost about 0.2% p.a. from its annual rate of return, assuming a ten year investment period and that all other assets earned 10% p.a. over that period.
However, a more likely outcome is that at least one of the companies goes on to become a success story and a few others put in solid performances. In this scenario, the investment in start-ups and early stage companies has the potential to significantly enhance the investment performance of the SMSF, perhaps by as much as an additional 0.5% p.a. return over the ten year investment period. Further, where the members of the SMSF can bring additional benefits to the investee companies through their knowledge and contacts, there may be an opportunity for them to ‘nurture their investments’, thus increasing the likelihood of successful outcomes and further enhancing their investment returns. Of course, Trustees would need to make sure that such investments are compatible with the SMSF’s liabilities, cashflow requirements and risk appetite.
According to data provided by the ATO, as of March 2010 there were over 400,000 SMSFs, with total assets of over $400 Billion. Of these, approximately 6,000 SMSFs (1.5% of the total) have assets in excess of $5M each. If each one of these SMSFs were to invest $10,000 in each of 10 start-ups and early stage companies, for a total of $100,000, that would represent approximately $600M of investment in Australian innovation – a welcome boost to an important sector of the economy that is currently underfunded.
“If the Government were genuinely interested in fully capitalizing on the benefits of Australian innovation, it could offer some tax relief for SMSFs that invest in start-ups and early stage companies – this would make the proposition even more attractive,” says Liszka.
SMSFs – are they the missing piece to the innovation puzzle?
************************************
Writer – James Claridge is a Capital Raising Consultant with Alchemy Equities – a company which facilitites equity capital raising for business development and expansion. Please contact http://www.alchemyequities.com.au/ for further information and contact details or phone 1300 308 882 or +61 2 9994 8976
Monday, November 29, 2010
Race Rally Road – Thoughtful and Unique Christmas Gifts
Everyone has a motorsport enthusiast is their life and while a Ferrari might be a little out of the price range this Christmas, a diecast Ferrari 500F2 is the next best thing.
Race Rally Road is the perfect solution for thoughtful and unique Christmas gifts. R3 offers a wide range of motor racing apparel, automotive books, motorsport art and collector diecast cars and bikes, catering for all motorsport enthusiasts.
With an extensive online store, you can do your Christmas shopping at the click of a mouse, no more waiting in queues at busy shopping malls! Click here to visit the online store now!
Matthew Dagg, the founder of the brand R3 is a performance car enthusiast with a background in design, so you can be sure that R3 delivers high quality products with innovative designs. Designs include the Porsche 956/962, Mustang and Bentley at Le Mans to name a few.
This Christmas give the latest and greatest in motorsport apparel. Race Rally Road has launched three brand new t-shirt designs, just in time for Christmas.
• Race: The Le Mans winning Aston Martin DBR1 from 1959
• Rally: Escort Service celebrating the great MK 1 & MK 2 Ford Escort rally cars
• Road: 1966 gave the world the first road supercar, the Lamborghini Miura.
During November and December, R3 are also offering a whopping 25% off the second R3 t-shirt purchased. Simply buy one full priced t-shirt for $45 and receive a 25% discount on a second t-shirt when purchased in the same transaction!
This special offer is not available with any other offer. To process your discount call (07) 5528 9825. The order and payment will be processed manually. Orders cannot be placed through the online store.
For a Christmas gift that will be enjoyed all year round why not give a subscription to Wheels Magazine? Race Rally Road is offering a subscription special in the November issue of Wheels Magazine so grab a copy today!
Wheels magazine will keep motorsport enthusiasts up to date with R3 product features and industry news. Also, look out for the international magazine Vintage Racecar, which will showcase Race Rally Road products in November and December.
For more information on Race Rally Road Christmas Gifts and Gift Vouchers visit www.racerallyroad.com or ‘Like’ the Race Rally Road Facebook Page for your chance to win two R3 t-shirts of your choice (RRP $100) in November!
Race Rally Road is the perfect solution for thoughtful and unique Christmas gifts. R3 offers a wide range of motor racing apparel, automotive books, motorsport art and collector diecast cars and bikes, catering for all motorsport enthusiasts.
With an extensive online store, you can do your Christmas shopping at the click of a mouse, no more waiting in queues at busy shopping malls! Click here to visit the online store now!
Matthew Dagg, the founder of the brand R3 is a performance car enthusiast with a background in design, so you can be sure that R3 delivers high quality products with innovative designs. Designs include the Porsche 956/962, Mustang and Bentley at Le Mans to name a few.
This Christmas give the latest and greatest in motorsport apparel. Race Rally Road has launched three brand new t-shirt designs, just in time for Christmas.
• Race: The Le Mans winning Aston Martin DBR1 from 1959
• Rally: Escort Service celebrating the great MK 1 & MK 2 Ford Escort rally cars
• Road: 1966 gave the world the first road supercar, the Lamborghini Miura.
During November and December, R3 are also offering a whopping 25% off the second R3 t-shirt purchased. Simply buy one full priced t-shirt for $45 and receive a 25% discount on a second t-shirt when purchased in the same transaction!
This special offer is not available with any other offer. To process your discount call (07) 5528 9825. The order and payment will be processed manually. Orders cannot be placed through the online store.
For a Christmas gift that will be enjoyed all year round why not give a subscription to Wheels Magazine? Race Rally Road is offering a subscription special in the November issue of Wheels Magazine so grab a copy today!
Wheels magazine will keep motorsport enthusiasts up to date with R3 product features and industry news. Also, look out for the international magazine Vintage Racecar, which will showcase Race Rally Road products in November and December.
For more information on Race Rally Road Christmas Gifts and Gift Vouchers visit www.racerallyroad.com or ‘Like’ the Race Rally Road Facebook Page for your chance to win two R3 t-shirts of your choice (RRP $100) in November!
Thursday, November 4, 2010
Tuesday, November 2, 2010
How Can You Protect Your Child Against Cold Sores?
Cold sores are generally harmless for most children, and whilst your little one getting a cold sore is nothing to joke around about, there are some practical tips you can employ to ensure the discomfort is a little easier for them.
The following tips from experienced naturopath and cold sore expert, Dr John Spurge, will help you to manage your young ones experiencing cold sores and better protect everyone in your family.
So what actually causes cold sores in children?
Despite the name, cold sores are not caused by a cold or flu virus, they are caused by a member of the herpes virus family called Herpes simplex virus (HSV). There are two types of this virus and it is normally the type 1 strand that is responsible for cold sores.
It is very common for young children to catch cold sores, an infection which is passed on from close personal contact. This could include sharing a cup, utensil, toy or face towel with someone who has a cold sore, or receiving a kiss from them.
Studies show that more than half of all young children who experience cold sores catch them in their infancy. This means that your little one is more likely to catch a cold sore from a parent, sibling or close family friend than from other kids at school.
Symptoms of a cold sore ‐ what to look for
The symptoms normally take about 2 to 14 days to show up when first infected. Your child might complain of their lip being itchy, red or tingly for a couple of days before you are able to see anything.
Usually a cold sore will look like one or more little blisters on their lips or face, which eventually break,weep fluid and then crust over and heal.
How to make your child feel better about cold sores
Cold sores can sometimes be really painful, especially for a child. The good news is that there are remedies that will help your child get past them and relieve their discomfort as soon as possible.
Some medications are specially designed to combat cold sore symptoms, such as Dynamiclear Rapid. You may also give your child a general paracetamol to help with pain relief. Ask your pharmacist for their recommendation taking into consideration your child’s weight and age, and be mindful to avoid Ibuprofen if your child is vomiting or has been diagnosed with asthma.
Dynamiclear Rapid is many parents’ product of choice when dealing with cold sore symptoms because of its ease of application and fast mode of action. Other cold sore creams require repeat applications(usually 5 times per day for 5 days), whereas Dynamiclear Rapid is one application only. This medication is much more practical for busy parents and a lot more convenient for children.
Once a child contracts the cold sore virus it will remain in their body for life, just like all viruses do. What this does mean is that they may be prone to having another cold sore breakout later on, possibly if their body becomes run down or their immune system is challenged.
Some children will never have another cold sore. If they do, maintaining a balanced diet, getting sufficient rest and exercising regularly will help keep future cold sores away. Applying a lip balm to protect against sun and wind, and taking an immune tonic to help avoid colds and flu, may also be effective in reducing recurrences. For more information obtain a free copy of the comprehensive Cold Sore Diet & Lifestyle
Guide at www.coldsorefacts.com.au.
5 rules of thumb to protect your family from cold sores
1. If you have any sign of a cold sore always wash your hands thoroughly before having any contact with a child and do not kiss them. Make sure your friends and family are educated too.
2. Cold sores can spread from the first sign of symptoms until the skin has completely healed. They can spread even when there is only itching and tingling, as well as when a sore is active or healing.
3. Discourage sharing of any utensils that may have come into contact with a person’s cold sore, including drinking cups, spoons and toys. If contact with a cold sore is suspected, wash the toys and utensils thoroughly before and after use.
4. Avoid breastfeeding if you have a cold sore or HSV lesion present on your breast.
5. If a child is prone to touching their cold sores it is a good idea to get them to wear gloves while they are sleeping and place a protective, non‐stick bandaid over the cold sore until it has healed.
This is because the cold sore virus can spread to the fingers and eyes through touch, especially if it is the child’s first cold sore. This will also help protect against scarring which may happen if the scab is picked off before it heals.
When should I see a Doctor?
If your child is showing signs of dehydration, such as a loss of energy or appetite, it is important to consult your Doctor as soon as possible. The cold sore virus often causes flu like symptoms, including a fever, but if this does not subside or is unreasonably high it is important to seek medical attention.
Lastly, if you suspect that your child’s infection has spread to another area, or, if they have had a special condition that affects their immune system (such as HIV or an organ transplant), professional guidance is recommended.
Dynamiclear Rapid® is a world first one application formula for symptomatic relief of cold sores. The actives in Dynamiclear work by penetrating the DNA of the cold sore virus, thereby inactivating and eliminating the virus on direct contact. Unlike existing cold sore products, results are seen rapidly from just one application, and there are no inconvenient repeat applications.
For more information visit http://www.dynamiclear‐rapid.com or phone 1800 646 921
The following tips from experienced naturopath and cold sore expert, Dr John Spurge, will help you to manage your young ones experiencing cold sores and better protect everyone in your family.
So what actually causes cold sores in children?
Despite the name, cold sores are not caused by a cold or flu virus, they are caused by a member of the herpes virus family called Herpes simplex virus (HSV). There are two types of this virus and it is normally the type 1 strand that is responsible for cold sores.
It is very common for young children to catch cold sores, an infection which is passed on from close personal contact. This could include sharing a cup, utensil, toy or face towel with someone who has a cold sore, or receiving a kiss from them.
Studies show that more than half of all young children who experience cold sores catch them in their infancy. This means that your little one is more likely to catch a cold sore from a parent, sibling or close family friend than from other kids at school.
Symptoms of a cold sore ‐ what to look for
The symptoms normally take about 2 to 14 days to show up when first infected. Your child might complain of their lip being itchy, red or tingly for a couple of days before you are able to see anything.
Usually a cold sore will look like one or more little blisters on their lips or face, which eventually break,weep fluid and then crust over and heal.
How to make your child feel better about cold sores
Cold sores can sometimes be really painful, especially for a child. The good news is that there are remedies that will help your child get past them and relieve their discomfort as soon as possible.
Some medications are specially designed to combat cold sore symptoms, such as Dynamiclear Rapid. You may also give your child a general paracetamol to help with pain relief. Ask your pharmacist for their recommendation taking into consideration your child’s weight and age, and be mindful to avoid Ibuprofen if your child is vomiting or has been diagnosed with asthma.
Dynamiclear Rapid is many parents’ product of choice when dealing with cold sore symptoms because of its ease of application and fast mode of action. Other cold sore creams require repeat applications(usually 5 times per day for 5 days), whereas Dynamiclear Rapid is one application only. This medication is much more practical for busy parents and a lot more convenient for children.
Once a child contracts the cold sore virus it will remain in their body for life, just like all viruses do. What this does mean is that they may be prone to having another cold sore breakout later on, possibly if their body becomes run down or their immune system is challenged.
Some children will never have another cold sore. If they do, maintaining a balanced diet, getting sufficient rest and exercising regularly will help keep future cold sores away. Applying a lip balm to protect against sun and wind, and taking an immune tonic to help avoid colds and flu, may also be effective in reducing recurrences. For more information obtain a free copy of the comprehensive Cold Sore Diet & Lifestyle
Guide at www.coldsorefacts.com.au.
5 rules of thumb to protect your family from cold sores
1. If you have any sign of a cold sore always wash your hands thoroughly before having any contact with a child and do not kiss them. Make sure your friends and family are educated too.
2. Cold sores can spread from the first sign of symptoms until the skin has completely healed. They can spread even when there is only itching and tingling, as well as when a sore is active or healing.
3. Discourage sharing of any utensils that may have come into contact with a person’s cold sore, including drinking cups, spoons and toys. If contact with a cold sore is suspected, wash the toys and utensils thoroughly before and after use.
4. Avoid breastfeeding if you have a cold sore or HSV lesion present on your breast.
5. If a child is prone to touching their cold sores it is a good idea to get them to wear gloves while they are sleeping and place a protective, non‐stick bandaid over the cold sore until it has healed.
This is because the cold sore virus can spread to the fingers and eyes through touch, especially if it is the child’s first cold sore. This will also help protect against scarring which may happen if the scab is picked off before it heals.
When should I see a Doctor?
If your child is showing signs of dehydration, such as a loss of energy or appetite, it is important to consult your Doctor as soon as possible. The cold sore virus often causes flu like symptoms, including a fever, but if this does not subside or is unreasonably high it is important to seek medical attention.
Lastly, if you suspect that your child’s infection has spread to another area, or, if they have had a special condition that affects their immune system (such as HIV or an organ transplant), professional guidance is recommended.
Dynamiclear Rapid® is a world first one application formula for symptomatic relief of cold sores. The actives in Dynamiclear work by penetrating the DNA of the cold sore virus, thereby inactivating and eliminating the virus on direct contact. Unlike existing cold sore products, results are seen rapidly from just one application, and there are no inconvenient repeat applications.
For more information visit http://www.dynamiclear‐rapid.com or phone 1800 646 921
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