Additionally getting prepared for the fund raising journey, and having in place appropriate material, and information can be time consuming, particularly as the different funding sources, each require a different focus in the supporting documentation. Such as when applying for a loan, the lenders’ focus is on the ability to repay the loan and therefore cash flows that the loan will generate. In comparison to an equity funding round where the investors’ focus is on the growth potential of the business, the opportunity for a successful future exit to enable the investors to achieve 4 - 5 times their money and the tax saving benefits they can enjoy when the investment is made and on successful exit.
There are often multiple sources for each type of capital and therefore it can be confusing and time wasting without prior knowledge or guidance:
There is also the opportunity to work with professional advisors to access the funding, such as a corporate finance house, a loan broker or specialist in accessing government grants or R & D tax credits.
The aim of this workshop is to clear some of the confusion and provide clarity and signposting about the different types of capital and funding available, how to decide which is appropriate for the firm, the likely costs involved, how to access it, where to go for additional support and advice, the material that needs to be prepared and the likely timescales to secure funding.