March 2004 AFR Forum Review

Investors are showing a little more interest in early-stage enterprises.

"The heat has gone out of the speculative property market and a lot of people are looking at early-stage investments," said Alan Midwidsky, a director of Business Strategies International.

Mr Midwidsky made the observation at the recent BSI Investor Forum in Sydney that presented seven new businesses to about 20 major funds.

The growing interest was confirmed by Jon Reid, managing director of Sydney-based Bio Recognition Systems, who made a pitch for $650,000 to expand the company's manufacturing and research and development capability.

"It was quiet a year ago," Mr Reid said, adding that with security a hot topic his business was unable to meet demand.

BRS has developed biometric hardware and software that includes using radio frequencies to identify fingerprints.

Following the BRS presentation, Mr Midwidsky confirmed that seven investors had shown interest, with one ready to commit to the full $650,000.

"That [reaction] has never happened before," he said.

Businesses that made their pitch at the first BSI forum of the year had to satisfy four criteria to appear.

They had to exhibit rapid growth potential, own their intellectual property, have export potential and be able to maximise government grants.

The six other companies which showcased their technologies were e-learning business Aframe Olams, along with Inchain, Venue Comm, Capacity Reporting Services, Ekaweb and SomaDynamics.

Mr Midwidsky said in the last quarter of 2003, there was a marked improvement in deals involving early-stage funds.

Author: Mark Fenton-Jones
Date: 09/03/2004
Source: AFRBreaking
Publication: Financial Review
Section: Enterprise