Kondoot calls on KPMG in $10 million capital raising
Monday, April 2, 2012/
Brisbane start-up Kondoot has secured KPMG as a corporate advisor for its $10 million capital raising.
Kondoot, founded by university friends Mark Cracknell, 21, and Nathan Hoad, 25, is a live video social network that allows users to broadcast themselves to a global audience.
It also offers the possibility of charging for access to a video stream, allowing record companies to sell tickets to a gig, or public speakers to sell tickets to their presentations online.
Last month, Kondoot unveiled an ambitious plan to raise $10 million through an initial public offering, after raising $3.2 million in a funding round led by US investors.
Kondoot has lodged a prospectus with the Australian Securities and Investments Commission for the initial public offering of its shares.
For its capital raising, Kondoot is offering 83,333,334 new shares at 12 cents each. Applications must be for a minimum of 16,667 shares or $2,000.
Now the start-up has secured KPMG Corporate Finance as a corporate advisor as part of its prospectus capital raising. KPMG Corporate Finance advises on public and private transactions.
It is believed KPMG will work with an exclusive panel of Australian and overseas brokers, who will be promoting the available shares in Kondoot to their clients.
It will also engage with financial sponsors and strategic investors, such as listed media and technology companies who may be interested in taking a cornerstone stake in the company.
The current offer is open to large investors as well as individual investors interested in participating.
Kondoot says it welcomes approaches from strategic investors, financial sponsors and brokers regarding potential involvement in the Kondoot capital raising, which is still ongoing.
Cracknell says he and Hoad are “extremely pleased” to be working with a global firm such as KPMG.
“Kondoot has the potential to completely revolutionise the way people communicate, broadcast and interact with each other,” he says.
“KPMG… will help us identify and share the many opportunities our company has to offer potential investors.”
Prior to raising $3.2 million in the US, Kondoot raised $800,000 – primarily from Australian investors – using the Australian Small Scale Offerings Board as a funding platform.
According to Cracknell, the most important thing for any start-up or entrepreneur is to know your product, and the market you’re trying to attract, “inside and out”.
“[This includes] how their product is different from the competition,” he says.
“Potential investors will ask countless questions and they need to know what makes their product not just different, but superior.”
“For web start-ups specifically, great traffic and great designs are good, but an effective monetisation plan makes raising capital far easier.”