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Funding growth via private capital raising is a major event and a business owner will carefully consider its ramifications.
Business capital raising can take many forms including…
Venture Capital
Institutional investments
Other Private Capital
A need for capital injection usually signifies two things. Firstly, that a business lacks the internal resources to fully exploit the opportunities ahead of it. And secondly, it can exploit those opportunities more effectively with an equity partner.
An excellent starting point is to identify the resources required. In our experience, the correct identification of those resources determines the quantum and timing of capital needed. It also indicates the percentage of ownership that may need to be relinquished and whether the current owners can retain control.
We build a profile of the desired investor attributes, which may be an institution, a corporate or an individual. The non-financial considerations are often the most important, with issues such as “Can we work with this party?” “Have they been an equity partner before?” and “How will we respond to their oversight of our business?” to be resolved.
Caplink sources investors with the desired attributes and ultimately negotiates a Shareholders Agreement. This document describes the roles and responsibilities of the equity partners and deals with many issues such as the timing and method of exit.
Such a thorough process mitigates much of the risk faced by a business owner raising capital and thereby enhances the chance of future business success.
Click here or call us on 61 3 8847 2100 and discover how we can assist you in achieving the best capital raising outcome for your business |
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