Entrepreneurial pot on the boil

There’s a bonfire under entrepreneurial activity in Sydney and Melbourne at the moment and the pot is bubbling. I was informed by one of the sponsors of a recent Aurelius Digital pitch night in Melbourne that there are similar events being held every night in Sydney by groups such as Sydney Angels, StartMate and Pollinate. Melbourne is not far behind, with groups such as Aurelius Digital and the Melbourne Angels and entrepreneurs’ spaces such as The Clusters and the York Butter Factory providing places to work, pitch and meet.

Business schools and universities also offer events, often with valuable prizes, such as business plan funding, or introductions to investors. At least one of our smart, publicly listed biotechnology companies started life in a pitch competition at Melbourne Business School, with a venture capital manager on the judging panel.

Deals are being done but the real benefit of this activity is the chance for both entrepreneurs and investors to skill up.

There’s nothing like watching another company pitch an idea. It’s easy to see the flaws when the project is not your own baby. And it is inspiring to see a smart, convincing pitch, too.

Investors improve their smarts by listening to the questions asked and picking up who is interested in what. Group investing reduces risk, of course, but groups can sometimes talk each other out of investments rather than into them.

The slightly competitive mood of pitch nights puts a little urgency and excitement into the idea of buying into a smart young company.

This kind of activity doesn’t last forever. There is quite a bit of pent-up demand and supply following the GFC’s uncertainty.

It’s time to get out and into it. Sure, you want to look for the best value but in part it is the sheer array of opportunities that is the main thing here.

The plethora of approaches, demands, insights, personalities and cultures is like an intensive education in angel investment from both sides of the ledger.

And the best part is that the “classes” are not in a boring classroom but in bars, restaurants and funky spaces full of energy, talk and laughter.

Find out what BRW Entrepreneur of the Year 2011 Matt Barrie is doing to create the next generation of entrepreneurs.

BRW

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