Capital Raising programs

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Capital Raising

Capital Raising through equity or debt finance is another option many Australian entrepreneurs consider to fund an innovative product launch or business acquisition. In an equity investment, you buy into a company and your profit is related to the performance of the company. Entrepreneurs seek additional support with funding in exchange for selling a percentage of their business. In a debt investment, you loan money to a person, a business, or a government institution and your profit is not directly related to the performance of the borrower.

Capital raising as an alternative financing tool.

  • Implement a strategy which analysis the use of debt versus equity investment.
  • Consider the benefits and costs of capital raising as debt is often cheaper than equity.
  • The cost of the debt, i.e., the interest rate, is tax deductible.
  • The ‘cost’ of equity is the earnings required to cover the non-deductible dividend payment.

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Accrutus Capital telephone

 

Capital Raising be ‘Investor Ready’

capital raising start-up and acquisitionInnovative Product

Is your idea or product innovative or disruptive and has the potential to be a game changer?

capital raising start-up and acquisitionMarket Opportunity

Is your business model an exciting market opportunity, can you navigate challenges and exploit them?

capital raising start-up and acquisitionHave capability

Do you understand your capabilities and willing to learn new skills to advance your business goals?

capital raising start-up and acquisitionExecution strategy

Do you have the appropriate structure in place for business development?

capital raising start-up and acquisitionCustomer acquisition

Is your speed-to-market and implementation strategy adaptable with your target customer?

capital raising start-up and acquisitionPre or Post revenue

Is your revenue growth model validated on actual sales or key assumptions?

Capital Raising for startups
capital raising acquisition
Capital Raising Australian SME
Capital Raising business development

Accrutus Capital supports growing business with alternative debt and equity funding solutions through all stages of the business cycle.

8 Steps to Capital Raising

  1. Evaluation of the business opportunity
  2. Getting the business model investor ready
  3. Key components of a successful Offer or Exit
  4. Professional presentation of your opportunity
  5. Reasonable valuation versus risk and reward
  6. Target the right investment channels for success
  7. Negotiating terms, shareholdings and exits
  8. Fulfilling your obligation to investors

accrutus 02 9006 1327Investor Ready?

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 02 9006 1327

Capital Raising Essentials

  • Proven business model & solid execution plan
  • Unique IP and a clear competitive advantage
  • Disrupt an existing market or create new one
  • Dynamic and amenable management team
  • Return on Investment of 25% of higher
  • Exit strategy as trade sale or IPO in 3 to 5 year

Capital raising equity finance?

Over time, equity based investments will provide higher rates of return than debt based investments. Capital raising should include a mix of debt and equity to manage risk and return. Companies would raise capital for;

  • start-up money to launch a new business
  • development capital to expand an existing business
  • venture capital for early stage companies focused on a technical innovation or disruption to the market
  • retiring of debt by issuing new capital via rights issues, bonds, placements or conversion of debt to equity

Capital Raising Participants

The aim of investors is to secure a reasonable rate of return appropriate to its risk. Investing in equity funds provides a return in the form of income (dividends) and potential capital gain. Equity investors expect a return of 25% or higher within a 3-5 year exit. Debt investors typically look for a return of 8% to 12% per annum.

Typical Investor participants are;

  • Institutional investors
  • Coporate venturing
  • Private or Individual investors which represent the following;
    • the passive long-term investor
    • the active hands on investor usually Angels
    • the irregular trader
    • individual venture capitalist or small fund
    • mum’s and dad’s who may invest in public or unlisted offerings
    • small scale offerings in unlisted companies
    • rewards based investing via crowdfunding trading platforms
    • peer-to-peer or B2B private funding channels

Capital Raising Alternatives

start-up government grants

supplier and sales invoicing

unsecured business loans

merchant cash advance

peer-to-peer lending

SME Bonds

time is money CTA

  • Investor Ready Workshop
  • Disclosure Document & Pitch
  • Issue SME Bonds Debt or Equity
  • Investment Coaching
  • Full Capital Raising program

Capital Raising Stages

Seed

Founders / family / friends / followers

$100K – $300K

Idea Development

Produce Prototype

Proof of Concept

Early Stage

Individual / Angels / SME Bonds

$400K – $900K

Proven business model

Shows initial revenue

Break-even or negative profit

Growth Stage

Sophisticated / VC / SME Bonds

$1m – $2million

Selling products

Maybe profitable

Expand market

Exit Stage

Private Equity / Venture Capital / Peer-2-Peer

$2m – $20million

Established market

Significant revenue

Trade Sale or Exit

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