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.
In the beginning stages of your company, you won’t likely receive support from angels or institutional investors. First you’ll be 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 that it will perform. Thus, when dealing with business angels, be advised that some will want majority ownership to mitigate their investment risk. This will drastically reduce the control you have over the company.
The early stage of financing a venture, before receiving funding from angel investors, is the survival stage. In this stage, firms enter first-round financing where primarily venture capital firms finance the company. As the venture’s growth accelerates in the rapid-growth stage, commercial banks will provide financing in the form of debt, such as loans with added interest. These banks 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. Eventually, investment banks can conduct an exit strategy such as a merger or acquisition, sale, or IPO for your company, helping you to liquidate some of your assets.
IPOs, Secondary Offerings
Guide you through the entire complex IPO process and help you raise capital post-IPO through secondary offerings
Crowdfunding, Venture Capital
Assist you with every step in the crowdfunding process and help you raise capital for your early-stage venture
Help you acquire private equity by consulting about optimal PE firms for you, planning exit strategies, and managing your finances
Review of Our Services
Issuer Consulting provides numerous consulting services that will facilitate your startup’s ability to raise capital. Regarding capital raising, 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 from a large number of investors, 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.