Growth Equity Investors
The process of bringing in 3rd party equity is far more complicated than simply quantifying the amount required, figuring out a valuation and then going to market. Not all investors money will have the same value and identification of strategic investors who can bring non-monetary value to your business will have a huge advantage over passive financial investors.
Capital is only good for the things you are intending to spend it on. If the purpose of the capital is to acquire more sales and marketing staff, then an investor who could open up a channel to market by selling your product through their existing sales channels / relationships is someone who is far more valuable than someone who simply gave you the money to hire the staff.
Drilling beyond the quantum of the capital raising itself and asking the broader question of what specifically your business needs to achieve its goals, combined with our extensive and detailed network of active investors, enables us to find the right funding partner for you. This detailed understanding of both company and investor universe also enables us to identify potential pitfalls in engaging in certain groups. This is particularly relevant if there is commercially sensitive information that you do not want to fall into the hands of a competitor.
Case Study: Retail Growth Equity
The client is a bricks and mortar plus e-commerce business that has a very large footprint of customers and a strong social media following. A$15m of equity was required to expand the company from NSW into Queensland and Victoria, expand their logistics footprint and increase sales and marketing expenditure. Through our existing relationships we discreetly approached a family office who had an existing retail/e-commerce business that targeted a similar demographic of customers, however in a completely separate product category. This investor had a large and under-utilised warehouse space currently that serviced Queensland and Victoria. The investor was able to put forward a proposal involving use of warehouse and cross promotion between the two databases of customers. This proposal was at a far higher valuation than other financial investors because of the synergies across the businesses. It also laid the foundations for a potential future merger and listing of the merged entities on the ASX, creating a far more profitable future exit event for both the family office and the Company’s shareholders.
Explore the Neu Capital investor network to see how our investor relationships match your growth equity funding requirement.
The Neu Capital network of institutional funds span several hundred Family Offices, Private Equity Firms and Large Corporates.