Startup Aged Care Reviews raises $600k from value add investors in 6 weeks
Media Release 19 March 2015
Startup consumer review website Aged Care Reviews has completed the first hurdle of its $1.4m Series A capital raise, raising $600k in just six weeks from value add investors through Tauro Capital Partners.
About Aged Care Reviews
Aged Care Reviews is a consumer review platform that allows families to research, shortlist and compare every aged care facility in Australia through validated consumer reviews.
Launched in January 2014 and currently housing just under 1000 reviews, the site receives facility data directly from the Australian Government’s ‘My Aged Care’ directory website to ensure every aged care facility in Australia can be reviewed by aged care residents and their families.
Value Proposition & Business
“The entire landscape of aged care is changing, with recent government policy moving to create a ‘market based’ industry. The industry is quickly becoming ‘user pays’, with the Government’s own Productivity Commission acknowledging an “information asymmetry” between aged care buyers and sellers” said Aged Care Reviews Co Founder & CEO, Kenneth Ray.
“Aged care accreditation is a minimum standard – done every three years with most audits notified in advance. It’s no guarantee of quality.”
“Aged care is an incredibly difficult transaction for families. Decisions are made amidst high emotion, with limited time available, limited information, complex funding regulations, and incredibly large amounts of money involved. The average accommodation bond in metropolitan cities is well above $400,000 – often meaning the family house must be sold.”
“Aged Care Reviews levels the playing field for families and our most vulnerable, arming consumers with the information they need to make an informed decision. At the same time we give aged care operators unique insights that allow them to improve their businesses and become more responsive”.
“We use ‘big data’ principles to provide families of aged care residents, and aged care operators, with a continual stream of consumer insights that allow better decisions to be made – for both buyers and sellers” said Mr Ray.
About The Capital Raise
Have A Voice, the parent entity of Aged Care Reviews, appointed Tauro Capital Partners in mid 2014 to assist with the capital raise. A Small Scale Offer document was launched with a capital raising target of $1.4 million.
Several value add investors have subscribed to the equity raising in just the last six weeks, attracted by the potential to tap into the lucrative aged care sector.
"This business has been really well received by the investment community and a number of the people who have got involved know first-hand how the difficulty involved in putting a loved one into aged care. The aged care industry is a huge global business and we believe this business will be one of the drivers of change in the market” said Simon Ward, Managing Director of Tauro Capital Partners.
“The capital injection is being used to grow our brand and increase marketing, develop and deploy a new smartphone app for families, and build out a sophisticated data analytics portal for operators” said Kenneth Ray.
New Leadership Team
Parent entity Have A Voice has appointed new high profile and experienced members to its leadership team. Co Founders Kenneth Ray and Andrew Henderson will be joined by three new non executive directors – Bert van der Velde, Gary Inberg and Nirmal Hansra.
Bert van der Velde was former CFO of Woolworths Ltd home improvement division, and has a career in senior executive roles with listed consumer facing brands.
Gary Inberg is a former Chairman of Investec Nominees, the Trustee Company for Investec Bank Australia, and is currently is Deputy Chairman of recognised Sydney based aged care leader Montefiore Homes.
Nirmal Hansra is an experienced senior executive and non executive director, whose current board appointments include listed retirement villages operator Eureka Group Holdings Ltd, employment services provider Campbell Page Ltd and peak advocacy body Council of the Aging NSW.