SportsHero, which claimed to be the world’s first social network dedicated to sports prediction, today announced that it is heading for the Australian Securities Exchange (ASX) in December 2016, via a reverse takeover (RTO) of Nevada Iron.
The Singapore-based company plans to issue 60,000,000 shares of common stock at AU$0.05 (US$0.03) per share with the goal to raise AU$3 million (US$2.2 million). It claimed that a recent initial roadshows to brokers and investors in Singapore and Australia have shown positive results, leading SportsHero to believe that it will be able to close the issue “early.”
SportsHero started out as FootballHero and the company rebranded as it began to include different kinds of sports in its platform. The platform was developed when CEO and Co-Founder Dinesh Bhatia saw an opportunity to expand the concept used in his previous work TradeHero into spectator sports.
The company is run by 11 people divided between Singapore and Shanghai. In May, it raised US$2.4 million, also from Nevada Iron.
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Bhatia talked to e27 over the phone to explain why the company decided to listed itself in ASX.
“We’re from Asia. There is SGX, ASX, and then there is also HKX. These are traditionally the three exchanges that someone in Asia, a tech company will list. ASX is very well known for its tech stocks … If you look at the retail investors, the mentality is actually very good. They were the one who put money into a lot of mineral and resources company [which SportsHero’s shell company Nevada Iron is one of it]. Many investors there were actually, ‘Hey, can we mine digital gold in Asia?'” he said.
“The other thing is that they understand sports very, very well,” he added, citing migme as one of the Asian tech companies that are listed in the ASX.
Bhatia also believed that there will be more Asian tech companies in the ASX as well.
What will be the company’s plan once they have managed to secure the investment?
“The US$2 million I think would give us 24 months without burn. With the model that we have now, I hope we would already be neutral to revenue positive. But along the way, we also have some very interesting ideas to bring new value added services, to enter a new market … Both might require additional fundraising,” Bhatia answered.
To fellow startup founders who are planning for their company’s exit, Bhatia had some words of advice.
“Always keep your eyes open for different ways of finding money. And take just how much you need,” he said.
He also stressed the importance of having a really good team to support a startup’s journey to exit.
“And remember that many startups failed not because they don’t have a great product, but they are running out of money,” he closed.