Various factors, including how quickly you’re seeking to raise capital, can play a part in deciding which options you may have or how to raise capital.
The amount and character of potential investors you are aiming for also play a role in how you can successfully raise the capital your business needs.
How can you maximize your capital-raising strategy to facilitate easier and more successful subsequent capital raising and future strategic transactions?
Seamless and effective strategies can be set up now to ensure that future capital-raising efforts, mergers, and sales are set up for success.
Ways to raise capital
Borrowing money from a lender or individual.
Selling shares of company ownership in the form of common stocks or preferred stocks.
A combination of debt and equity characteristics. Hybrid securities provide investors with a fixed or floating rate of return as interest or dividends. Tend to be more complicated.
A capital investment that is repaid through a percentage of revenues from the company’s operations.
Selling securities of a company to the public:
Institutional Investors, Retail Investors
- Regulations: Heavy
- Full Registered Offering (SEC)
- Regulation A (SEC)
- Rule 147 (SEC)
- Regulation Crowdfunding (CF)
- Time to Completion: At least 4 Months
- Cost: Medium to High Legal Costs ($50,000+)
- Keeping paperwork drafting very organized
- State & Federal-level compliance
- Reaching a crowd
- Planning: communications, marketing, and events
Raise capital with confidence.
At Founders Legal®, our specialized Securities Law team has the strategic insight and industry experience to guide you through a successful capital-raising process with confidence.
Our Securities Services have helped thousands of businesses accelerate their growth and take their business to new heights.