As Founders and Business Owners ensuring that the time is right is essential when raising capital to grow and expanding your business. As an Emerging Company understanding how much your company needs to raise to focus on key necessities will allow you to focus on what your company does best.
With over 50 years of accumulated experience at Barclay Pearce Capital we have summarised a starting point;
What is the definition of Raising Capital?
Raising Capital is the process in which a company undergoes in order to add additional funds for the business which investors buy shares in. This process can be done in a variety of ways to whichever best suits the business who the capital is for which includes Convertible Notes and Ordinary Shares.
“Growth is never by mere chance; it is the result of forces working together.”
- James Cash Penney, founder, JC Penney
Considerations when Raising Capital?
- Valuation - This has to something that will be appealing for both the Investor and also accurate for the business. BPC undertakes Due Diligence in order to fairly value the company and also give investors a chance to buy into the story and see the company strive.
- Use of Funds - When going to Market to raise capital its always in the companies best interest to raise funds as a want rather than a need. This gives Investors insight and comfort that the company is looking to grow and expand rapidly rather than raising money to stay afloat. An example of this could be raising money to build sales teams, or acquire a company.
- Timing - The best time to seek funding is when investors are querying your company, you have done something that increases the value of your company and when your business won’t need the money but rather it’s looking to grow and expand rapidly.
What is your Exit Strategy for Investors?
Here at Barclay Pearce, we specialise in creating an Exit Strategy for our Investors and this can come in many forms including but not limited to IPO’s (Initial Public Offering), On-Market Placements and M&A Transactions (Merger and Acquisition). Barclay Pearce provides and excels in these 3 major events that happen for any Business using our approach of the right people with the right solutions.
Barclay Pearce emphasises 'the right people with the right solutions' which will allow not only us but also you to focus on what we both do best and to get the desired result.
If you would like to talk about how your company gets to this stage, book in for a call.