EXPANSION / LATE STAGE START-UPS
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Expansion and Late Stage Start-up companies with patents, tested products, and their first customers and at or approaching break-even are finding that with the IPO market shut down, the avenue to obtain growth capital is shut off. Many Expansion / Late Stage Start-ups – sometimes called Growth Equity or Growth Capital- have invested years and many millions of dollars into their technology. They have patents and trademarks filed in many or most of the countries in the world, and have had their prototypes tested by possible customers. But now that they have orders, they don’t have the cash to fulfill them. Inventory manufactured overseas can take a month or more on the water.
Until a company has been operating profitably for two years and has positive balance sheet equity, its not bankable by a FDIC deposit taking institution. Many non-banks want to charge interest rates that equal equity returns. Equity investors want to dilute a start-up at a time that doesn’t share risks and rewards. Patent trolls and Vultures offer cents on the dollar for a start-ups hard earned technology. And delay in the start of sales wastes untold shareholder value.
We assist in:
• capital raising of senior debt, subordinated debt, and equity in the low seven figures and up
• identification of and negotiation with “alternative” non-bank lenders
• creating and reviewing strategy regarding the licensing of technology and intellectual property rights
• global market segmentation and demand estimation by IP application/industry channel
• valuation of intellectual property by application/industry channel
• monetization of intellectual property, patents, technology
• negotiation of licensing agreements and royalty payments
• financial benchmarking to determine optimal capital structure
• determination of required liquidity for optimum market penetration and to avoid financial distress
• preparation for exit, whether IPO, acquisition of a small public company, or sale to PEG or strategic buyer
• identification of demand drivers using statistical methods
• industry analysis
• global competitor analysis
• financial modeling and forecasting
For more see: Raising Capital
Mergers and Acquisitions
Exit Planning
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– Turning a diamond-in-the-rough into a jewel requires finesse. We can obtain capital where others can’t for expansion / late stage start-ups.
– Expansion and Later Stage Startups need capital. We can assist companies that are growing their revenues and have passed breakeven.
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