Secure The Right Funding
Securing the best/right Funding to suit your purposes is not a straightforward affair in most cases. There are possible pitfalls to consider and the many paths one can take to secure finance that best suits you and your objectives can be daunting.
Below are shown just some path examples we can take to secure the parameters required to fulfill your objectives.
Lenders & Funding
Funding will depend on your requirements and risk tolerance to pay the monies back and what kind of return on investment you are offering to the investor. Securing funding is never easy or straightforward, however, we endeavor to make all negotiations as easy and transparent as possible.
Below are paths clients can take via boomfii.com to secure funding. We understand most will know what these types of funding entities are and how they operate. This is for those who may not be familiar with the mechanisms and structures.
Venture Capitalists
A Venture Capitalist is an investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to funds. Venture Capital is money that is given to help build new startups that are considered to have both high-growth and high-risk potential.
Fast-growth companies with an exit strategy already in place can gain up to tens of millions of dollars that can be used to invest, network, and grow their company frequently. As long as a business is viable and is built with the future in mind, it has a great chance of getting sponsorship from Venture Capitalists.
Private Investors
A Private Investment Fund is an investment company that does not solicit capital from retail investors or the general public. There is an advantage to maintaining private investment fund status, as the regulatory and legal requirements are much lower than what is required for funds that are traded publicly.
It is better to have more than one Investor in a company because they will not interfere in the running of the business. A group of investors can come up with good and practical solutions to move the company forward.
High Net Worth Individual
High-net-worth individuals (HNWI) and Ultra-High Net Individuals (UHNWI) are persons whose investible wealth is great with assets such as stocks, bonds, and holding financial assets.
The benefit of approaching an HNWI or UHNWI is less paperwork but they will expect higher returns on their investment.
Board Level Access
We have direct access to individuals of Banks and Financial Institutions who are the decision-makers in their relevant organizations in Europe, the USA, and Asia.
This guarantees a quick decision on any proposal put forward for review.
Private Equity
Private Equity Investors raise pools of capital from limited partners, pension funds, and high-net-worth individuals, forming a lending platform - also known as a private equity fund. Once they've hit their fundraising goal, they close the fund and invest that capital into another promising enterprise.
Private Equity Investors are quick to react but expect a high return on investment and will sell their shares at the quickest possible opportunity.
Asset-Based Investment & Leasing
In an Asset-Based Investment, the investor is making their investment based on the valuation of some held Asset that the borrower has, that asset acts as collateral. For example, if a company has bought a new piece of equipment at the cost of $75,000, money can be borrowed against that asset.
Quick decisions are made depending on the loan to value of the asset and the lender may require a floating debenture (A charge on the company's assets). This means minimum interference with the running of the company and will allow advantages for the selling and purchase of the assets.
Rachet Back Funding
A Ratchet is a term whereby if another Venture Capitalist (VC) later pays a lower price for shares in a startup the VC that bought shares earlier with the 'Ratchet' protection gets a price adjustment to that lower price.
What this means, an agreement with the investing source on the basis of the company achieving its aims or exceeding them, the investor reduces their shareholdings in the company.
Debt Finance
The majority of new small businesses are funded with Debt Financing, predominately via bank Loans or bonds. Debt Financing is the act of borrowing money from an outside party with the agreement that you will pay the initial principal back with a negotiated level of interest.
The advantage of Debt Finance you do not have outside shareholders wanting information from the company. The disadvantage you cannot miss an interest or loan repayment as this will then mean the leader will become involved with the business. We can also arrange for, invoice financing (factoring). Mainly used for startups and small companies to provide cash flow.
Family Offices
A Family Office is a privately held company that handles investment management and wealth management for a wealthy family, generally one with over 100M€ in investable assets, with the goal being to effectively grow and transfer wealth across generations.
As a shareholder who is in for the short term looking at growth to allow them to dispose of their investment at some stage in the future.
If they like you, they will invest in you, and their approach is far more personal.
Angel Investors
An Angel Investor is an individual, or a group of individuals, lending capital to those needing to raise funds to run their business. Angel investors invest in startup companies in exchange for a return for shares. Angel Investors will take preference share capital so as not to affect the management of the business.
These investors have helped to start up many prominent companies in Europe and the United States today, and they still remain a great source of finance for small businesses.
If you are considering working with us, we can make our team member(s) credentials available to you who have a working relationship with the investing entities and can advise accordingly before making any decision or commitment.