SECURING GROWTH CAPITAL
Starting a company is not that difficult. Growing and scaling one is.
Raising growth capital is the biggest challenge for tech companies across the Atlantic:
- Most growth funds are located in only a few geographies
- Growth is the most important and challenging stage for most companies
- Institutional investors look for specific metrics ensuring risk mitigation
- Market adoption, business model, and technology risks must be mitigated
Growth capital is a strategic and very important step for any company. It is used to align a company for a successful next round or exit As sources and uses of funds have changed significantly recently, investors’ expectations have changed, and competition increased.
Raising capital and building a high-growth company is about understanding its changing needs and challenges of a company throughout its lifecycle. It is about team building, execution, managing expectations, establishing relationships, and understanding the ever changing markets, needs, and trends.
Understanding the fundamentals, the process, and the challenges is critical to success. To succeed, you need to understand how venture funding works and how investors work with entrepreneurs. You must have an in-depth understanding of the fundamentals, language, and terminology as well as the process and requirements during each stage of a company’s lifecycle.
- Capital sources & needs at different stages are key elements of a fundable business model
- Validating assumptions
- Understanding term sheets, valuation, stock options, and cap tables
- Process documents including Private Placement Memorandum (PPM), Term Sheets, etc
- Legal aspects and Venture debt
- Selecting professional advisors
- Strategic partnerships
- Contemplating exit options