How can we help you to Raise Finance For Your Company?
We have experience in helping businesses to raise capital for their growth and expansion plans. We can advise on the steps needed so that you can put your business plan together, investor offer, private placing offer, help you to reorganize your share structure or provide registrar services. We can help you to get your company investment ready. Investment ready can mean different things from a legal, accountancy and tax perspective. We can advise on how many shares to sell and what value to place on this. We can also advise on whether you may be eligible for HMRC EIS or SEIS approval and assist with those applications.
There are 3 main ways to raise finance for your company. You can borrow money from a bank or friends and family or you can sell shares in your company.
Raising finance refers to the process in which a business looks to raise funds from external sources so they can achieve their strategic goals, whether that is growth, business developments, expansion or funding joint ventures or even raising brand awareness.
Equity raising occurs when a company seeks to raise funds through the sale of its equity - i.e. a share in the ownership of the company. The equity investors can generally be anyone that possesses the cash required and is willing to meet the company’s owners on its valuation. A company that overvalues its equity risks alienating most investors, who will fear not seeing an adequate return on their investment.
Most companies with positive outlooks (i.e. their equity is attractive to investors) can avail of equity funding. Like debt raising, certain equity raising agreements can have different conditions attached, and when this happens, it is usually referred to as ‘preferred equity.’ The stock market is the largest and most well-known method of equity raising, where publicly listed companies sell their equity to raise funds and maintain liquidity.
There are several kinds of raising equity, with the big differentiator between them being the stage of a company’s evolution to which it applies to. In broad terms, the different types of equity raising - in chronological order, from early companies to mature companies, are:
- Seed financing
- Angel financing
- Venture capital
- Private equity
Require more information?
If you would like more information or would like to speak to us direct then call us on 01296 821 888. Or if you would prefer, ask us a question online.