Fund Raising
Village Capital advise companies on their total funding requirements which may include one or both of equity and debt. Advice is provided throughout the whole transaction process, from the preparation of investor materials and business plan; introductions to & negotiations with funders, through to the completion of the legal documents.
Each client has different requirements therefore every transaction is tailored to suit your specific needs. This requires a full understanding of the underlying business and the viability of the business model.
Investor Type
Village Capital has access to an extensive network of funders. Many forms of finance are available and it is essential to target the most appropriate source. These could include one or a combination of the following:
- Private Equity Funds
- Venture Capitalists
- Banks
- Specialist Debt Providers
- Angel Investors
- Angel Investor Networks
- Pension Funds
- Corporates
- Venture Capital Trusts (VCTs)
- Enterprise Investment Scheme (Funds)
Transaction Type
Businesses have characteristics that appeal to differing funders who all have their own specific parameters. Particular characteristics often restrict investment and as it is important to make the whole fund raising process efficient, Village Capital carry out a pre-qualifying process.
In particular, the stage of business development and the use of funds will impact which investors are approached. Village Capital advise on and effect transactions at the following stages:
- Seed Capital
- First, Second, Third Financing
- Pre-IPO Financing
- Development Capital
- Expansion Capital
- Acquisition Capital
- Merger
- Turnaround
- Management Buyout / Buyin
- Exit
Process
The fund raising process can be time consuming with the demands of investors very high. Clients use Village Capital to carry out the transaction work which enables Management to focus on their core business and therefore limit distractions from day to day activity.
Advice is provided throughout the transaction process, which generally follows the following format:
- Preparation of materials for investors
- Business plan
- Financial Forecasts
- IP verification documents
- Supporting material
- Co-ordination of the potential funder introductions
- Investor meetings
- Negotiation of terms
- Due diligence
- Documentation
- Closing meetings
Documentation of the transaction will include:
- Shareholders Agreement
- Memorandum & Articles of Association
- Sale and Purchase Agreement
- Loan Agreement