CapXcentric

Did you know: if you say "ESOP" 3 times in the mirror, yours will magically arrange itself into the most appropriately sized option pool for your business? There are millions of dollars in upside being left on the table by founders when it comes to ESOPs. It doesn't just *happen* ESOPs impact everyone from employees, investors, founders and the company. The implications of fucking it up can run into the millions of dollars for each party. CapXcentric founder Warwick D. runs through the requirements for the most appropriate way to think about an Employee Share Option Plan for your company, in this recent 'Aussie Startup Capital Nerd' blog. Don't not read it. Know it, breathe it in, say it three times: ESOP. SIZE. MATTERS. https://lnkd.in/gsEX8Uag

How long does it take to fundraise in Australia? Significantly longer than it takes to read this article by CapXcentric founder Warwick D., as he documents in his newsletter 'The Aussie Startup Capital Nerd' newsletter. SIGNIFICANTLY LONGER. https://lnkd.in/gesv8TPf

We hate wasting founders’ time, and that includes this LinkedIn post. Founders: Warwick D. writes all sort of technical and extremely useful articles as ‘The Aussie Startup Capital Nerd.’ Bloody read it. https://lnkd.in/gXxDze6E

A friendly reminder for all founders to prioritise yours and your teams health 👋

Let's talk about 2025, and the amount of time you'll need in advance to execute your successful fundraise in it. Early-stage (pre-seed and seed) venture capital is mostly about investing in the founding team and it takes time for investors to build the conviction in the founders required for investment. Founders who turn up asking for capital without any prior relationship or reputation (or the ability to leverage other’s relationships and reputations) will almost always lose out to those with existing multi-year relationships and reputations. The next time you see a capital raise announcement, ask yourself this: ⏰ How long the founders have been building the relationships? ⏰ How many years’ experience do they have in their domain to be able to execute this capital raise? Those founders have probably known some of their key investors for several years, have had 10+ years’ experience in their industry, spent a good few months preparing for their capital raise and another good few months to years nurturing relationships with investors in the lead up to the raise to then ‘execute’ the capital raise. Plus, to boot, a couple of weeks to a few months afterwards, to finish off the negotiations and paperwork required to close it all out and get the funds in the door. Read more c/o CapXcentric Founder Warwick D. on The Aussie Startup Capital Nerd Substack: https://lnkd.in/gesv8TPf

Start spreading the news (to WA DeepTech Founders): CapXcentric are bringing the 'DeepTech Founders Only' gathering to Perth, in a special West Tech Fest edition Wed 4th Dec. Warwick D. is in town to meet any and all fundraising founders preparing 2025 fundraises in the following frontier technology pursuits: Cyber Security, AI, MedTech, Life Sciences, AgTech, Energy & Environment, Space, AeroSpace, Advanced Materials, Robotics, Hardware, & other complex DeepTech and non-DeepTech areas. Warwick is also speaker at the Life Sciences WA & Innovate Medtech Masterclass ‘Developing Your Product and Company’ on the 29th November, before participating in West Tech Fest for the duration of the week. Any/all DeepTech founders, head along to meet each other, and let's have a caffeine fuelled nerd out session about frontier technology and the complex capital requirements that sustain continued growth and expansion! Link in Comments.

I know that when an investor asks a founder "pre-money or post-money" the nervousness starts to creep in.... then throw in a pointed question on the mechanics of a SAFE note and a silent panic attack is likely playing out. SAFE notes are meant to be simple but are actually quite complicated for most. That's why I write these technical capital raising articles for founders. I want to demystify a lot of what happens in the startup capital raising industry as clearly and simply as possible so that you have the confidence to have investor conversations. But honestly, experienced investors stuff this stuff up all the time too... So do I! I've been investing since I was 12 years old and have done 150 odd startup investments and I can still get some of this shit muddled. This article on pre-money and post-money SAFE notes is important to me as it is a topic that most service providers, investors and founders struggle to understand and articulate. I hope that is no longer the case. Would love to hear if this article was helpful? Cheerz big earz

Hot Off The Press: a new article on The Aussie Startup Capital Nerd Substack: 'Pre-Money vs Post-Money SAFE Notes in Australia: What Founders Need to Know.' Raising capital using SAFE (Simple Agreement for Future Equity) notes has become a go-to tool for Australian founders. SAFEs streamline the fundraising process by postponing valuation debates until a future funding round. However, understanding the distinction between pre-money and post-money SAFEs is critical, as it directly impacts founder dilution and investor ownership. Have a read of this brand new article by CapXcentric Founder Warwick D. (and share it around to a founder friend) - we’re breaking down what a SAFE note is, explain the differences between pre-money and post-money SAFEs, provide worked examples, and outline what founders should keep in mind when negotiating terms. Link in comments 👇

You can't spell Warwick without WA. CapXcentric Founder Warwick D. goes West to engage with Deeptech founders at the Life Sciences WA & Innovate Medtech's MedTech Masterclasses AND West Tech Fest, at the end of this month! Appearing on Day 2 of the MedTech Masterclass activation focused on developing products and company, Warwick appears alongside experts from KPMG, Wrays | Intellectual Property, Planet Innovation and Department of Jobs, Tourism, Science and Innovation to cat all things securing funding, navigating regulatory changes and raising capital. Flowing nicely into West Tech Fest as it takes over Perth & Fremantle (& perhaps a little bit of Rottnest Island) from Dec 2 - 6. DeepTech Founders looking to set themselves up for success in their 2025 fundraise strategy, contact Warwick to line up a coffee. (He'll only mention Melbourne's coffee is better once, twice maximum) Read Warwick's 'The Aussie Startup Capital Nerd' Substack via the link in comments now, including his most recent article 'So you've missed the 2024 Cap Raise Window...What Now?' On the agenda to meet currently: Danelle Cross, Kali Norman, David Burt, Rob Nathan, Oliver Bazzani, Rohan McDougall, Paula Taylor, Dr Kyle Turner, Jaynaya Winmar, Larry Lopez, Brodie McCulloch, Ophelie Cutier, Andrew Outhwaite, Les Delaforce, Charlie Gunningham, Jason Balchand, Joshua Boys (he/him), Lacey Filipich, Kylie Gerrard, Derek Gerrard, Tim Brewer, Rohan W., Maxine Minter, Elaine Stead, Cheryl Mack, 🙌 Garry Williams and Minister Stephen Dawson.

🚀 Missed the 2024 Aussie Startup Capital Raise Window? The holiday season isn’t just downtime—it’s a chance to regroup and set your capital raise up for success in 2025! My latest article shares actionable tips for Aussie founders to make the most of this period: ✅ Reflect on your strategy. ✅ Perfect your materials (pitch decks, narratives, data room). ✅ Strengthen investor relationships and plan for April/May settlements. ✅ Take care of yourself—this is a marathon, not a sprint. 📖 Read the full article via link in comments