Advanced Capital Raising Strategies

Many business owners in Canada and the US can also consider different options for capital raising. Investment partnership is a good structure which can be set up in Canada and US; placement agents and conferences are also 2 alternative ways to find capital in Canada and in the US.

Investment Partnerships

It seems like lawyers, accountants, consultants, and other professionals always are on the lookout for a good investment. If your business is doing well, and the opportunities for growth look good, don’t be surprised when professionals that you’ve hired to work with your firm approach you to see whether they can invest in your firm. When the professionals who work for you invest in your firm, everyone benefits: You get the cash that you need and, when your company performs well, your investors can get a nice return on their investment.

So the next time your professionals come looking in your neighborhood, be ready with a presentation about your business that you can pitch to them on a moment’s notice.

Offshore

Capital markets are truly global nowadays. If your company is large enough and has a high enough profile, limiting your search for capital to local sources, or even to sources in the United States, isn’t necessary. Just as American investors always are on the lookout for a good investment, investors in other countries also are on the lookout for lucrative places to park their money. This isn’t an easy path, and it’s definitely not fast, but it may be the option that you’re looking for.

If you’re interested in attracting foreign capital, you need to do a couple of rings:

  • Become an attractive investment for foreign investors. Target a specific group of potential investors and then be sure that your business is aligned in a way that will be appealing to this group.
  • Get word to potential foreign investors that you have an opportunity in which they’ll be interested, and then induce them to come and take a look. This tactic means networking like crazy with potential investors ‘” and friends and associates of potential investors ‘” and getting your company’s name into the foreign press. If you’re really serious about attracting foreign capital, it may be worth your while to hire someone to represent you in the countries you’re targeting.


Placement Agent

Getting the right placement agent can be worth its weight in gold. A placement agent is someone hired to find prospective investors for a company.

Just as having a great salesperson selling your products and services can bring you more business than you know what to do with, a great placement agent can bring you more investors than you know what to do with. If you’re looking for investors ‘” not simply loans of cash to help you get through a tough spot in your operation ‘” give a placement agent a shot at generating capital for your business.

Conferences

Attending industry conferences is a great way of attracting people who may be willing to pump a bit of good old-fashioned cash into your operation. Here is just a sample of some of the nationwide industry conferences that are specifically designed to pull together companies looking for capital and investors looking for companies in which to invest their money and that provide companies with the information they need to more effectively raise capital. Every big city, and many smaller cities, offers conferences like these. Actively attend them and make a point of meeting as many people as you can while you’re there. It takes only one ‘” the right one ‘” to get you the capital you need.

  • Innovest (Cleveland, Ohio)
  • Capital Venue (New England)
  • VentureNet (Irvine, California)

Angel Investors

For many companies, angel investors are made in heaven. An angel investor is an individual who has the financial wherewithal to invest directly in the companies of his or her choice. As the number of people who have earned true wealth increases, so do the number of opportunities for companies to hook up with these angel investors who want to put their wealth to work.

Because of the inefficiencies involved in pulling together companies that need capital with the people who have capital, a number of organizations have sprouted up to enable companies seeking capital to meet and network with angels.