EQUITY FINANCING SERVICES
Another alternative for the company to raise capital is Equity Financing. Borrowing funds from banks can be weary due to the intricacies involved. In that case, equity financing can be viewed as a viable option for the companies to cover their costs. Under this, there are several ways through which funds can be raised:
FUNDING FOR STARTUPS
Venture Capital Firms
The new age companies that have plans to enter the business community or have been in the industry for last few years require funding either to set up the company or meet the growth targets. Hence, Venture Capital investing becomes beneficial for them. These firms usually invest up to INR 40 – 50 CR (upto USD 5 – 7 Mn). They are a group of investors who provide a large sum of money to emerging companies. These can help them multiply and make them appear on the stock exchange.
Angel Investors
They are individuals who usually invest smaller ticket sizes in comparison to Venture Capital firms, say, up to INR 2CR (upto USD 250k). These investors help young businesses and startups in exchange for equity in the industry. These funds help the startups come on track during the initial phase and eventually provide them support for the ongoing financial operations.
Venture Capital Firms
The new age companies that have plans to enter the business community or have been in the industry for last few years require funding either to set up the company or meet the growth targets. Hence, Venture Capital investing becomes beneficial for them. These firms usually invest up to INR 40 – 50 CR (upto USD 5 – 7 Mn). They are a group of investors who provide a large sum of money to emerging companies. These can help them multiply and make them appear on the stock exchange.
Angel Investors
They are individuals who usually invest smaller ticket sizes in comparison to Venture Capital firms, say, up to INR 2CR (upto USD 250k). These investors help young businesses and startups in exchange for equity in the industry. These funds help the startups come on track during the initial phase and eventually provide them support for the ongoing financial operations.
FUNDING FOR MATURE COMPANIES
Private Equity Firms
They are the group of investors who invest in the existing companies to expand their working capital, install new technology or make a significant acquisition. They differ from public markets and can directly invest in the companies. The investment made by these firms are usually of bigger ticket sizes, INR 50 Cr (USD 6 – 7 Mn) to even as large as INR 300 CR (USD 40 Mn).
Private Equity Firms
They are the group of investors who invest in the existing companies to expand their working capital, install new technology or make a significant acquisition. They differ from public markets and can directly invest in the companies. The investment made by these firms are usually of bigger ticket sizes, INR 50 Cr (USD 6 – 7 Mn) to even as large as INR 300 CR (USD 40 Mn).
Thus, choosing all these channels for sourcing funds contributes to one major factor, risk. After becoming a part of the company, the financial risk is borne by the investor to the extent of capital undertaken. As a result, Equity financing doesn’t burden the company with the repayment (in comparison to Debt) and makes it worthwhile for a startup and a mature company.
But a well-established network is required to raise funds through Venture Capital, Private Equity and Angel Investors.
That is when Suprateek comes in…
At Suprateek, we have a secured and vast chain of networks with potential financial investors. Our team understand the clients’ businesses, their financial requirements and help them to get prospective financers per their needs. These ventures contribute to the company monetarily and provide their expertise to aggrandize the company. Hence, we become an essential intermediary to expedite the engagement with the investors.