Website has been updated. Click here to reload
GO TO STARTUP ECOSYSTEM
Menu
×

No pending connections

    No active connections

    No removed connections

    No follows

    Close
    Other Articles
    Angel Investors and Venture Capitalists – Difference and How to Get to Them?
    Angel Funding - What is Angel Funding? Where to Find Angel Funding?
    Startup Capital
    Accessing Early Stage VC’s – An Excel List Early Stage Venture Capital
    The SEC has charged ICOBox with Securities Law Violations to the Cheer of Incumbent Players
    Howdoo Token Swap to Replace Lost Exchange Tokens.
    International Monetary Fund's Christine Lagarde Urges Openness Towards Cryptocurrencies While Emerging Countries Crack Down
    Watch Blockcard in Action
    Get to Know Ternio
    MANNY PACQUAIO - CHAMPION, POLITICIAN, CRYPTOCURRENCY? BOXING LEGEND INTRODUCES 'WORLD'S FIRST' CELEBRITY CRYPTOCURRENCY
    MAJOR CRYPTOCURRENCIES ARE SEEING RED - BITCOIN LOOKS SET TO FALL BELOW $9,000 SUPPORT
    What is a Cap Table and How Does a Cap Table Work?
    NANO LEDGER'S BROKEN PROMISE OF 'RADICAL DECENTRALISATION' AND SCALABILITY
    DECENTRALIZE CRYPTO KEYS? ONE NON-PROFIT COMPANY IS PROPOSING EXACTLY THAT
    When to Buy Crypto - Buy Crypto When Gold Surges up - According to Mark Mobius
    A Global Decentralized Currency may be the Future - Outgoing Bank of England Chief Calls on Centralized Financial Institutions to Create a Global Stablecoin
    What's in a Strategy? All you Need to Know About Go to Market Strategy
    DECENTRALIZATION: WHY DOES IT MATTER FOR THE HOSPITALITY MARKET?
    The SEC Has Issued a Cease and Desist Order against ICO Rating
    What Exactly is a High Risk Investment?
    A Beginner's Guide to Investment - How to set up an Investment Portfolio
    INSTITUTIONAL INVESTMENT IN CRYPTO REACHES $200 TO $400 MILLION PER WEEK - ACCORDING TO COINBASE'S CEO
    this is a funny video
    WHAT IS FOREX TRADING?
    Cover Image
    Posted by Shane McQuillan 9 Jul
    ComentComments
    Like (2)

    What is Capital Raising?

    Companies, no matter what kind of size they are, will always rely on some level of external funding in order to turn a profit longer-term. Whether this is from a bank, investor/s, or even from thousands of people on a stock market. This is known as Capital Raising, and it's a necessity for companies of all kinds.

    On its own, it's a loaded term, so it's worthwhile to unpack it somewhat to better understand. So, what do we mean when we use the term Capital Raising? We refer to the capability of an individual or entity in securing investment or capital in order to allow the business to get started, maintain ongoing development, or even build up development.

    Along with unpacking the term, any organization or startup looking to secure some level of capital raising can't simply distribute shares or go in front of a banking team and request a loan. So how do you, as the head of your own business, achieve this? First and foremost, you need to have some kind of strategy in place for hashing out what it is you have right now and what you're going to need in the future in terms of capital.

    Preparation, Preparation, Preparation.

    For any business, that's the name of the game when looking to obtain investment. And while it can mean the difference between the life and death of your company as it stands, it's a step that is frequently, and foolishly overlooked. This step actually goes by a broader name.

    Commonly known as a Capital Raising strategy, and for any fledgeling startup, or company looking to build up its staff, operations, etc, it's one of the best things that you, as a CEO can do. Generally, it involves getting as firm an understanding as you can regarding things like your annual profit margins or turnover, including outgoing expenses for staff, various projects and spent resources.

    While this is the most time-consuming part of any broader plan to obtain funding, the more you do - the better positioned your company will be in securing the funds needed. Along with understanding the company's current in and outgoings, you'll need to get as close to a 360 degree understanding of the underlying health of your company.

    Where to Find Investors and Selling Yourself

    So, with the ins and outs of your company thoroughly understood, you'll need to look at the various ways that you can obtain investment and where would be best for you. The first question would be what kind of investment companies you can approach with your company for investment and making a list of what firms you can arrange meetings with.

    It's important as well to think of if the kind of product/s you sell are for a niche audience. For example: if your company is Sales as a Service, or operates as a supplier for smart cities, blockchain or healthcare - then it's worth looking into whether there are investment firms.

    We'll be delving into more of the strategy for Capital Raising, including the various kinds of capital raising you can obtain, investment types available for your company, including how startup companies can get started and successfully securing investment capital. So stay tuned to TrustIn Trading for more insight into the financial world!

    show 0 deleted comments