If you’re company needs capital then this article is a must read. We discuss the “how” and “where” to find capital in an ever changing landscape.
How to Find and Attract Capital for your Company
Company leaders who are the most successful in finding and securing capital are the ones that understand two things. How to prepare an investment request, more commonly known as an offering memorandum and how lenders or investors evaluate risk and return. This article walks through the process of how to prepare an offering memorandum and how to find capital. When dealing with capital placement, it is paramount that you understand how lenders evaluate risk and return in addition to the different availability of capital.
The first step is the most time consuming but is also the most important. I cannot over emphasize the importance of a well written and documented offering memorandum. You will only get one chance to make a first impression regarding your investment opportunity. A couple words of caution when writing an offering memorandum, be incredibly honest and upfront. Under no circumstance hide anything that is negative. In fact, inform the capital group about the issue and explain how you are overcoming the issue. The last thing you want to create is an atmosphere of distrust with investors. A well written memorandum should allow investors to come to a very quick decision regarding your opportunity. Most memorandums are split into four sections.
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