The importance of raising capital
For a growth focused businesses, capital raising is an important component of success often misunderstood by business owners. Growth devours cash and in times of high-growth, you will often need to bring on external investors to help fund you next stage.
Clear Light Capital provide advice on establishing a sound business base to facilitate fundraising and long-term strategic plans. Assisting your business to define a clear corporate strategy, plan for investor readiness as well as the creation of the information memorandum and capital raising facilitation.
Investors are looking for an opportunity that meets the criteria of their portfolio; most businesses don’t meet those criteria. Being unprepared for growth, sale or exit de values your business.
Clear Light Capital advises on how to prepare, plan and add value to your business to maximise your outcomes.
How to do it
There are a number of stages in raising capital that may be new to you. We assist you to:
* Structure the capital raising in a way which is a win-win and protects your interests.
* Understand the legalities that allow you to raise capital under $10m without a requiring a prospectus.
*Develop and deliver the perfect ‘pitch’ – what to say, what not to say and how to deliver it.
Investors are looking for opportunities that are ready, that means you need to have all the core elements in place to create confidence in your offering. Your systems and processes, finances, tax, insurance, compliance, legals, business plan, IT and more will all be reviewed when looking for investment. An attractive offering for investors has had the risks minimised, and where they still exist a mitigation strategy in place.
An IM is documentation outlining your business position, achievements, marketplace, strategy and investor opportunity. This document along with your pitch is critical in your preparation for investors.
Ensuring you have created a context for your decision making and the decision making of your team is integral to achieving your goals. When raising capital your investors are looking for a clear path to their return. Having clarity around your future plans assists you and your team to make decisions and take action that is consistently moving you forward toward exit or investment.