Daniel Hansen is the founder and CEO of investment firm, OMNIA Global. A life-long entrepreneur and investment specialist he is passionate about connecting SMEs with the support they need to help them grow and helping investors maximise returns. Working with high net worth clients across the world, he and his team are expert in leveraging new sources of finance, including the luxury asset market. Here he shares his thoughts on the 2018 SME investment market.
The Funding Models Have Changed
In many ways, the financial crisis has been good for SMEs. As traditional funding has become less accessible, we’ve seen a proliferation of different funding models developing. There has been a move towards more agile, flexible platforms; including kickstarters, crowd-funders and mini bond options; all boosting the financial health of SMEs and making them receptive to a range of investment offers.
Think SME for Strong Yields
Small companies are actually the ones where you can see the highest yields and it’s becoming more normal for smaller companies to go public so investors can be a part of that too.
It’s Time to Embrace Third Way Funding
At the same time we’re seeing the a new ’third way’ funding model emerging which allows entrepreneurs to raise money and retain some control of their business at the same time. Instead of relinquishing a business completely, with the help of expert teams like ours, owners can ‘cash out’ while continuing to be part of the company – and investors can buy a stake in a growing concern.
Accentuate the Human
Working with SME founders is very different to working with big corporate players and understanding how they work is important. Founders have a much deeper, commitment to the businesses they are building. For them business is personal. They are usually people motivated by freedom, by doing things their own way, rather than money. So if you are going to work with them, creating that kind of personal, human connection is vital. As a potential investor/partner you have to be likeable too – someone they would like to work with.
I’m an entrepreneur who wants to work with the financial markets. I’m doing business our way, working on investments that benefit everyone and always looking for partnerships where we can share skills, expertise and add value.
Are you looking to do the same?