How to Raise Capital
Capital Raise Process Overview
- We work with you to review your growth plans and establish likely appetite and pricing.
- Identify preferred investor profiles.
- Target investors using our M&A database of transaction participants & contacts to reach more investors. Benefit from our success with private company transactions.
- Leverage our experience to complete the transaction documentation and capital raising.
12 steps of raising investment capital
Here are the key elements of an effective investment/capital raising proposal.
- Step into the shoes of investors
Understand how they weigh risk and returns.
- Outline the business model and where you see the business going
- Articulate your sustainable strategic advantage. Explain the problem and how your product or technology solves it in a superior way.
- Articulate a clear vision of what is possible and formalise a plan for achieving it.
- Explain where the business is now and where you believe it can be.
- Secure key assets, relationships and IP
- Protect your IP assets as far as possible. Eg Formalise protection via trademarks, patents etc.
- Lock down key supplier and licence arrangements that underpin your position.
- Showcase your track record of achievement (if there is one)
- Explain your expertise and how competent you and your team are at delivering.
- Determine what resources are required
- Including money, expertise, technology, people etc.
- Work out how much each will cost and how long it will take to acquire it.
- Work out how much money you will need in total.
- Plan to take as little cash off the table as possible, so most or all of the investors’ funds are available to grow the business.
- Explain in detail what you need the money for
- Break your goals into discrete stages.
- Set out key milestones that will be achieved along the way.
- Work out how much money you need to complete each stage.
- Break the investment into instalments with drawdowns conditional on achievement of those milestones.
This provides a staged investment plan for the investors and reduces their overall risk.
- Decide on the overall value of the business with the investors’ funds included
- Decide on what share of the business the investors’ funds will buy.
- Decide on the optimal organisational, legal and financial structure
- Work out the degree to which you will accept equity or debt, or a combination of both.
- Also consider loans with options to convert to shares.
- Decide on the profile of the investors
- their industry experience
- financial capacity
- active or passive
- strategic fit eg ready-made distribution channel.
- Set out exit strategies for the investors, including how and when
- Set out all the above items in an Information Memorandum or Prospectus
- Engage an appropriate Advisory firm
- Engage a firm to assist with the process
- A firm that has the expertise and the resources to perform effective direct targeted marketing on a large scale.
- A firm that can facilitate negotiations and the process to completion.
Find Out More About Our Capital Raise Service
Please contact us for a free, no obligation initial discussion with a qualified advisor to discuss your capital raise requirements.