10 Things You
Must Know to
Raise Capital

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Investment Ready


Question: Does Capital 4 Business find the investors?

Answer : You need to be realistic about raising capital. It is never easy. Our experience is that in the most successful early stage capital raisings, the first people to invest in a business are people 'known' to the business eg. Family, friends, clients, suppliers who want to 'firm up' their relationship with you. The reason for this is that you have set up a proper structure to raise capital and a clear pathway has been identified. It's quite different to going to ask Dad to lend you money.
This also gives other 'unknown' investors some confidence, as if you are not able to attract investors who know and like you.'unknown' investors will probably wonder why.
We also work with you to help attract investors.

We have growing Data Base of Investors that we will pitch your offer to and we use a web based investor Bulletin Board where anyone in the world can access your offer. We also send out a monthly Newsletter to a significant number of potential investors

You should also make allowance for a promotional budget so that we can take your offer to a wider market.

Question: How long does this take?

Answer : Unlike other Capital Raising exercises, a Small Scale Offering will usually happen quickly. You do not need to produce a Prospectus which can take 6 to 12 months, and cost a fortune. Most clients will have a good idea of whether their business is attractive to investors within 3 to 6 months.

Question: Do ineed a business plan?

Answer : Yes, absolutely. If you do not have one, you should get one done. It will help you crystallise your thoughts and plans. Many clients have told us that completing a Business Plan helped them see their business in a different light.

We will need information from your Business Plan to include in your offer document. Some of this information about your business, the opportunity and the financial projections will be vital for investors to asses whether they will consider investing in you.

Question: How much will this cost?

Answer : We charge an Upfront Fee and we also receive a Success Fee on capital that is raised. Our fees are significantly lower than many other players in the Capital Raising space - we will discuss them with you. Our system allows you to "test" the investor market quickly and affordably. Certainly, in terms of a comparison if you were to go to a bank and try and borrow an equivalent amount (assuming you had the financial information to support the borrowing, and had sufficient bricks and mortar to offer as security) our fees are very competitive.

Question: Can you guarantee that you will help me raise capital?

Answer : NO! we cannot. Raising capital is never easy. Don't let anyone tell you differently. In the end, an Investor will make a decision on whether to part with their hard earned funds and invest based on their belief in YOU. They may like the business, they may see the potential for it.but if they do not believe that you can deliver the outcome, they will not invest. That is completely out of our control. We have seen many instances where investors have turned cold because the owner was not able to convince them that they could deliver. You will need to be credible. You will need to demonstrate that you know what you are doing and you will need the investor to have some kind of 'empathy' with you. People buy People.that's a fact of life that is very real in Capital Raising! YOU would never give your money to someone you did not like and trust.Neither will an investor!

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