www.industry.gov.au
L10/20 ALLARA STREET
To all COMET clients
CIVIC ACT 2601
GPO BOX 9839
CANBERRA ACT 2601
TELEPHONE:
02 6213 6087
FACSIMILE:
02 6213 6106
E-MAIL:
Ron.Jansen@industry.gov.au
Dear COMET client
COMET Client - Capital Availability Questionnaire
The Department of Industry, Tourism and Resources is currently gathering information on the
availability of capital to small, innovative Australian companies such as those accessing the
Commercialising Emerging Technologies (COMET) program.
Anecdotally we have heard a number of views about the need for further support being targeted
at the early stages of the investment market. Some analysts and industry practitioners have
indicated that an ‘innovation progression funding gap’ exists, restricting the ability of some
businesses to fund proof of concept work and to test and evaluate concepts for their potential.
Activities in this sphere include securing or enhancing intellectual property, providing support
for additional R&D, allowing construction of prototypes, preparing a business plan, and covering
legal costs.
The Department is investigating the possibility of this gap in the market. However, we need to
base any further work on quantitative evidence.
The Department is therefore keen to obtain the views of COMET clients, such as yourself, given
that COMET recipients are aware of the current environment and the availability of capital.
The questionnaire is not compulsory. However, we would be grateful if you could provide
answers to the attached questions and return it by 23rd May 2003. To assist in this regard, we
have enclosed a return envelope which has been pre-paid by this Department, or alternatively,
please fax your completed questions to (02) 6213 6106.
Thank you in anticipation.
Ron Jansen
Innovation Policy Branch
Department of Industry, Tourism and Resources
March 2003
C
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COMET Client - Capital Availability Questionnaire
Please mark your responses with an ‘X’ in the correct area, ie [X], or with the appropriate
number when specified.
Please note that your individual responses will not be published. They will be utilised in
aggregated formats for ITR policy development purposes.
1. Availability of finance
1.1. Has your organisation sought debt finance in the last 24 months for commercialisation
activities?
Yes [ ]
No [ ]
1.2. Has your organisation sought equity finance in the last 24 months for commercialisation
activities?
Yes [ ]
No [ ]
1.3. If you have answered ‘yes’ to either of the above two questions, please provide an
indication of the purpose for which you required such finance. More than one answer is
acceptable
R&D
[ ]
Research infrastructure
Patenting
[ ]
Early prototype
Trialling/testing [ ]
Commercial scale prototype
Market testing [ ]
Tooling up
Staffing
[ ]
Marketing
Establish production facilities
Establish national distribution channels
Establish international distribution channels
Other (please specify) .……………………………………
…………………………………….
[
[
[
[
[
[
[
[
[
]
]
]
]
]
]
]
]
]
1.4. How many of each investor type have you approached for finance in the past 24 months?
(Please insert number in each box)
Private investor/Angel
[ ] Bank/other financial institution [ ]
Venture capitalist
[ ] Government program
[ ]
Other (please specify) .……………………………………
[ ]
1.5. How many potential investors offered you finance?
Zero [ ]
1 [ ]
2 [ ]
3-5 [ ]
>5 [ ]
1.6. If you were offered finance and did not accept it, please indicate why.
High interest rate for debt [ ]
High equity stake to be provided [ ]
Onerous funding conditions [ ] Change of business plan
[ ]
Better offer accepted
[ ]
Other (please specify) .……………………………………
[ ]
If you have not sought or were unsuccessful in obtaining either debt or equity finance,
please go to question 4.
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2. If you sought debt finance in the past 24 months, please answer the following questions.
Note: K = $,000s
2.1. How much debt finance were you seeking?
<$100K
[ ]
$100K < $250K [ ]
$500K < $1.0m [ ]
$1.0m < $2.0m [ ]
2.2. How much debt finance did you receive?
Nil
[ ]
<$100K
[ ]
$250K < $500K [ ]
$500K < $1.0m [ ]
$2.0m or more [ ]
$250K < $500K [ ]
$2.0m or more [ ]
$100K < $250K [ ]
$1.0m < $2.0m [ ]
2.3. If you received debt finance, what interest rate was levied?
<5%
[ ]
6% - 7% [ ]
8%-9%
5% - 6% [ ]
7%-8%
[ ]
>10%
[ ]
[ ]
2.4. If you received debt finance what did you use as security for the loan?
Intellectual Property [ ]
Company assets
[ ]
Personal assets
[ ]
Other (please specify) ………………….………………….[ ]
2.5. What was the maturity period for the loan?
6 months [ ]
2 years
[ ]
4 years
1 year
[ ]
3 years
[ ]
>5 years
[ ]
[ ]
3. If you sought equity finance in the past 24 months, please answer the following
questions.
3.1. How much equity finance were you seeking?
<$100K
[ ]
$100K < $250K [ ]
$500K < $1.0m [ ]
$1.0m < $2.0m [ ]
3.2. How much equity finance did you receive?
Nil
[ ]
<$100K
[ ]
$250K < $500K [ ]
$500K < $1.0m [ ]
$2.0m or more [ ]
$250K < $500K [ ]
$2.0m or more [ ]
$100K < $250K [ ]
$1.0m < $2.0m [ ]
3.3. What percentage of your organisation did this equity represent?
0
[ ]
10% < 20%
[ ]
30% < 40%
<10%
[ ]
20% < 30%
[ ]
>40%
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[ ]
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4. If you have not sought to obtain or were unsuccessful in obtaining debt or equity
finance in the past 24 months, please answer the following questions.
4.1. If you were unsuccessful in securing debt or equity funding, what were the reasons
provided?
Technical risk
[ ]
Untested market
[ ]
Track record
[ ]
Inappropriate business plan [ ]
Management experience
[ ]
Unproven product
[ ]
Other (please specify) .……………………………………
[ ]
4.2. If you were to seek debt finance what interest rate would you be prepared to pay?
<5%
[ ]
6% - 7% [ ]
8%-9%
[ ]
5% - 6% [ ]
7%-8%
[ ]
>10%
[ ]
4.3. If you were to seek debt finance would you be prepared to use your intellectual property
as security for a loan?
Yes [ ]
No [ ]
Not applicable (eg. Have no tangible IP) [ ]
4.4. If you were to obtain a loan, what do you think is a reasonable timeframe for the
commencement of repayments?
Immediately [ ]
1 year
[ ]
3 years
[ ]
>5 years
[ ]
6 months
[ ]
2 years
[ ]
4 years
[ ]
4.5. Do you think a loan guaranty provided by a third party to a debt finance provider would
enable you to secure debt finance for commercialisation? A loan guaranty means that
someone agrees to meet your responsibility for servicing a loan if you default on repayments.
Yes
[ ]
No
[ ]
4.6. What level of loan guaranty provided by a third party to a debt finance provider would
you consider reasonable?
100% [ ]
90% [ ]
80% [ ]
70% [ ]
60% [ ]
5. Size of Finance Gap
5.1. If you consider that there is a range of finance in which it is difficult to access debt or
equity finance, where is it most apparent? More than one answer is acceptable
Not difficult
[ ]
<$100K
[ ]
$100K < $250K [ ]
$250K < $500K [ ]
$500K < $1.0m [ ]
$1.0m < $2.0m [ ]
$2.0m or more [ ]
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6. Availability of finance
6.1. Based on your experience, do you think the finance market adequately services the needs
of those seeking commercialisation funding?
Yes
[ ]
No
[ ]
If No, please briefly indicate why. Other comments and your general views on the current
finance market are also welcome.
7.
How much time did it take to complete this questionnaire? (please indicate the closest time)
10 mins [ ]
20 mins [ ]
45 min [ ]
1 hour [ ]
2 hours [ ]
4 hours [ ]
>4 hours [ ]
Thank you for completing this questionnaire
Please return completed questionnaires using the reply paid envelopes given to the
Innovation Policy Branch, Department of Industry, Tourism and Resources, GPO Box
9839, Canberra, ACT 2601, or alternatively fax the questionnaire to: (02) 6213 6106 by
23rd May 2003
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