For many entrepreneurs, the biggest obstacle when launching a company is capital raising. Privately selling shares involves less legal fees and can thus be more affordable than selling shares publicly. Small and emerging ventures commonly choose to raise money from private investors such as angels or venture capitalists. Throughout this process, it is essential to comply with securities laws mandated by the SEC as well as local Blue Sky laws.
Capital Raising
Overview
In the beginning or seeding stages of your company, you likely won’t receive support from angels or institutional investors. First you’ll be bootstrapping and raising money from your close family and friends. As your company grows, angel investors may want to invest, but will want equity in your company in return for stock. This equity may be obtained upon the completion of term sheets and other legal documents. Often, it takes a persuasive investor pitch to convince angels to invest in your venture. They are taking a risk by investing in a newly formed company that hasn’t realized its potential. The newer the company, the more difficult it is to predict how it will perform. Thus, when dealing with business angels, be advised that some will want majority ownership to mitigate their investment risk. If you lose majority, it will drastically reduce the control and flexibility you have over the company.
Initial Public Offerings
Guide you through the entire complex IPO process and provide consulting advise regarding raising capital through S-1 and Reg A+ offerings.
Crowdfunding, Venture Capital
Replace early stage venture capital financing with crowdfunding. We can assist you with every step in the crowdfunding process and connect you with our funding portal partners.
Private Equity
Help you acquire private equity by consulting about optimal PE firms for you, planning exit strategies, and managing your finances
The stage after receiving funding from angel and family and friend investors is called the survival stage. In this stage, firms enter first-round financing where primarily venture capital firms and commercial banks finance the company. During this stage investors bare less investment risk than the seeding stage but still a significant amount. As the venture’s growth accelerates into the rapid-growth stage, lenders will provide financing in the form of debt, such as loans with added interest, as well as second round financing from venture capitalists and larger private equity firms. These firms wait to finance ventures to ensure that the company has shown that it is capable of surviving. However, when they do invest, they are capable of providing a large amount of capital. After second round financing is complete, investment banks can conduct an exit strategy through a merger or acquisition, sale, or IPO, helping the company to liquidate some of its assets.
Review of Our Services
Issuer Consulting provides effective consulting services that will facilitate your startup’s ability to raise capital. We can consult you on IPOs, Crowdfunding, Private Equity, Venture Capital and Secondary Offerings. Our services include helping you find investment bankers to efficiently conduct your IPO and consulting you throughout that entire process, discussing crowdfunding offerings and strategies that will optimize your financial gain, and helping you devise exit strategies in advance. This ultimately mitigates your risk, ensuring that you can exit the market at any time. Our consulting services will allow you to streamline the capital raising process, maximizing you and your company’s profit.
