Capital Raise

Equity finance is the process of raising capital through the sale of shares. This could be to source money for short-term cash needs or funding for a long-term growth strategy, and usually involves the sale of part-ownership in your business in return for cash, sourced from friends and family, investors or even an IPO.

Raising capital or equity finance could involve the sale of common equity or other equity or quasi-equity instruments, such as preferred stock and equity units that include common shares and warranties. You can use this form of finance several times in the process of your company reaching maturity.

We can partner with you to successfully raise the funding you need, introduce you to suitable investment partners, manage investor communications, ensure that due diligence requirements are met, and guide you in securing and closing the deal. We have the expertise to manage the project and walk you through the preliminary stages that result in a sellable business plan, pitch deck, financial forecast, data room and valuation.

Our process would follow a two-part road map:

Part 1 - Initial Business Equity Consultation

We advise you in your strategising groundwork regarding a potential equity raise, whether it be to fund the business itself or incentivise employees. We will introduce you to the various equity sharing models, and discuss those models that will best meet your needs. The consultation would include:

  • A review of your current equity position and stage of business, and the next steps
  • An explanation of different models available, for example, employee share incentive schemes, phantom shares/shadow equity, simple agreement for future equity (“SAFE”) agreements, and grunt funds.
  • The decision regarding the best solution for the company and its stakeholders and a proposition of the next stage of the process.

Part 2 - Implementation of the Capital/Equity Raise process - personalised and adapted to your unique requirements

  • Investment strategy - including preparation of an optimal business plan reflecting growth trajectories, timelines, discuss potential investors and regulatory requirements, and succinctly articulate this in an investment proposition.
  • Financial and valuation analysis - including a financial model that forecasts the future performance of your business and underpins the valuation, while simultaneously ensuring that you and your team are fully conversant and comfortable with this reflection of your business’s prospects.
  • Investor pack - this will communicate the key value drivers of your business to potential investors and allow the investor to make an informed decision, based on the facts provided, using a powerful narrative. 
  • Access funding networks and source growth capital - we will introduce you to investors, facilitate investor meetings, and partner you as you gain momentum in the funding round as we search for the best deal for you and your business.

Due to the specific nature of the capital raising process and the different scope involved with each case, our prices start at R22,500 (ex VAT) per month for a predetermined period and include and can only be confirmed once we have conducted a planning and scoping meeting.

We look forward to becoming your investment partner.