Ingogo’s mobile app: small business owners can process customer payments on the spot using a Bluetooth-enabled mobile device / users can create and send Xero invoices automatically and receive next day payment settlements all year round.

Fran Foo for The Australian writes: MOBILE payments start-up ingogo has secured more than $9 million in funding, attracting several high-profile investors including one with links to Alibaba, the Chinese e-commerce player making waves on the New York Stock Exchange.

The funding will help ingogo diversify its business, primarily to develop a mobile solution for small businesses which can accept payments and make accounting entries in real-time, alleviating the need for manual processes.

Ingogo, better known for the taxi app which bears the same name, is gearing up to go public on the ASX in the first half of next year. The capital injection values the business at more than $45m, with $16.2m raised to date.

John Ho, who runs major ­Alibaba investor Janchor Partners, a $US2 billion ($2.3bn) equity-focused hedge fund in Hong Kong, invested in ingogo as an individual.

Other investors include MYOB co-founders Craig Winkler and Chris Lee, Melbourne family offices, Pitt Capital, and a number of local and Asian institutional funds. The latest round saw equity-based crowd-funding platform VentureCrowd raise $1.2m from nearly 50 individuals who were pre-qualified sophisticated investors.

Ingogo is working with online accounting software firm Xero on its diversification plan where small business owners can process customer payments on the spot using a Bluetooth-enabled mobile device.

Ingogo claims users can create and send Xero invoices automatically and receive next day payment settlements all year round.

The alliance is a natural fit for the start-up as Mr Winkler and Brad Shofer, another MYOB co-founder and ingogo investor, both have significant stakes in Xero. [snip].  The article continues @ The Australian, click here to continue reading...

VentureCrowd fund-raising adds $1.2m to start-up ingogo’s $9.1m raising Rose Powell for the Australian Financial Review writes: Sydney start-up ingogo has raised $9.1 million, including $1.2 million via a ­crowdsourced equity platform, in a sign that new funding mechanisms are starting to take off.

Taxi booking app and mobile payment system ingogo closed a $9.1 million round led by UBS and Canaccord Genuity on Tuesday. The funds come from a range of local and Hong Kong investors who have valued the three-year-old company at $45 million.

Founder and chief executive Hamish Petrie said start-ups needed to either raise from multiple investors or look overseas for funding.

“We’ve got a range of investors now, from well-known start-up backers to more private institutional investors,” Mr Petrie said. “It’s a really interesting mix and helped us get the round to where we needed it to be.”

The taxi booking app is available in Sydney and Melbourne. The new funds will go towards establishing teams to drive growth in other cities, as well as developing the mobile technology.

Mr Petrie said his team of 26 was increasingly focused on its mobile payments system unit. They are beginning to roll it out beyond the taxi network as they field inquiries from electricians, plumbers and small retailers.

Fifty people invested $1.2 million via VentureCrowd, which enables sophisticated investors to invest up to $2500 in each company, a far smaller amount than a usual start-up investment. The companies and investors are vetted by Artesian Venture Partners.

FOURTH DEAL OFFERED

Ingogo is the fourth start-up “deal” offered on the platform since it launched last month. The deal was over­subscribed, closing in three days.

Chief operating officer Tim Heasley was excited about the platform but amazed by ingogo’s rapid success.

“This is a pretty hot deal but it’s an example of what’s possible,” Mr Heasley said.

“The smaller-chunk investment means you don’t need to have as much money so this enables us to open up and democratise what has been the preserve of the rich and well connected. “Just imagine if the federal government finally lets us open it up to everyone.”

The start-up industry had hoped for updates to existing laws in the Harper review that was released last week.

But the report did not even mention the emerging tactic, despite months of consultation that resulted in a report by the Corporations and Market Ad­visory Committee, which the Abbott government is about to abolish.

Changes to the regulation of crowdsourced equity – technically legal but difficult – have been postponed.  The article continues at the AFR, click here to continue reading...

MYOB, Xero in fight for clients

Michael Masterman for Accountants Daily writes: Competition between software giants Xero and MYOB is increasing with both companies reporting significant uptake in new customers, including businesses switching software providers.

In announcing it will indefinitely extend its free MYOB-to-Xero conversion service, Xero claimed small businesses are switching to their product "in droves".

The Jet Convert service, which allows MYOB customers to move their accounting ledgers to Xero, was first offered in April this year. Since then, thousands of customers have used the service to join Xero’s fast-growing base of more than 147,000 Australian customers.

“We’ve been incredibly happy with the uptake of the conversion service offered by Jet Convert, but also with the rapid acceleration in customer growth this year” said Chris Ridd, managing director of Xero Australia. 

In a survey of new Xero customers who joined since September 2013, 67 per cent of those who responded said they had switched from a rival product, including MYOB.

Tim Reed, chief executive of MYOB, told AccountantsDaily said this isn’t reflected in his firm’s usage rates.

“We don’t see the corresponding decrease in usage that would indicate that those customers are coming from us.”

Mr Reed also said MYOB is itself seeing an increase in clients converting from other software providers.

He said this competition is a good thing for both accountants and the businesses they advise.

“I think this is a really dynamic time in the market and I think there is a lot of innovation taking place and we are really thrilled and excited to be a big part of that innovation.”

“We are investing close to $45 million per calendar year in our R&D and we are very excited about the support that we are getting from accountants across the country,” Mr Reed added.

MYOB announced last week it now has over 100,000 online subscription holders.

Financial Well-Being — Retirement and Tax Planning

Erin Eddins for MyEdmondsNews.com writes: Saving for retirement can be a lot more complicated than just socking away money for later. By strategically coordinating your income, retirement accounts and investments to maximize tax savings, you may be able to reach your retirement goals more efficiently.

Assemble Your Team

It’s common to work with several professionals to manage different aspects of your financial affairs, such as CPAs for tax guidance, estate-planning attorneys, insurance agents and others. But are they working as a team to help you? Be sure to provide your advisor with contact information for your other professionals. This helps your advisor to be part of a coordinated financial team, ensuring everyone is working in concert to help you attain your financial goals.

Diversify Accounts For Tax Purposes

Having a mix of taxable, tax-deferred and tax-free retirement and investment accounts can provide a measure of control over taxable income as well as flexibility as tax laws change. Many people approaching retirement already have taxable and tax-deferred accounts. To add a tax-free account, you can contribute to a Roth 401(k) account or convert assets in tax-deferred accounts to a Roth IRA.

Investigate Tax Strategies

Don’t wait until year-end — talk to your financial advisor and CPA now about ways to minimize taxes or defer taxable income.

If you hold investments with unrealized taxable gains or losses from the current year, always be sure to share this information with your financial advisor before making any significant financial decisions. Strategically harvesting gains and losses in taxable accounts can lessen your capital gains tax. Selling underperformers can generate capital losses that can be used to offset your gains, plus up to $3,000 of ordinary income. If you’ve already sold some investments at a loss, you might consider taking capital gains on appreciated stock. As long as the gains aren’t more than your available losses, there may be no tax liability.

Next, you will want to work with your financial advisor and CPA to determine your expected income for the year, your adjusted gross income (AGI) and your tax bracket. Knowing this, you’ll be able to identify deductions and tax credits you can take advantage of, and you can examine strategies to minimize your tax responsibility.

One tax strategy is to delay a portion of your income — and defer taxes on that income — until the following year. For example, if an expected year-end bonus might propel you into a higher tax bracket, you can ask your employer to delay your bonus to the following year. You can also delay distributions from a traditional 401(k) or IRA, but at age 70½ you must take required minimum distributions (RMDs). On the other hand, if you have a large tax-deferred account balance, your RMDs might be more than you need for living expenses, and come with a significant tax impact. In such a situation, you may want to take distributions earlier. It’s imperative to work with a tax professional to determine the correct tax strategy for you.

Even if retiring seems far away, takings steps now to maximize your savings will help you prepare for the retirement you desire. 

Erin Eddins is a Certified Financial Planner and Chartered Financial Consultant with Stancorp Investment Advisors in Lynnwood.