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Covid-19 Impact on US Private Capital Raising Activity in 2020

InvestmentBank.com

As the world headed into the uncharted territory of a worldwide pandemic, investors in both debt and equity markets reacted to shifts and changing conditions in several interesting ways, and the lessons they learned and the actions they take this year will set the stage for everyone’s access to capital in the years to come.

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Capital Raise Blog Series - Vol 10 - What Is Venture Debt?

RKJ Partners

Yet, taking this equity investment means accepting painful ownership dilution due to the low valuations given to companies at this early stage. Venture lending is usually offered in two forms: "growth capital" and equipment financing. Fees overload – The true cost of debt is often increased by the inclusion of numerous fees.

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How much equity should you give away when taking investment for growth?

Growth Business

The stake will depend directly on the amount you want to raise compared to your business’s total valuation. To determine the value of the shares specifically, you need to adjust for the debt and cash in the business.

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Capital Raise Blog Series - Vol 9 Strategies to Raise Capital

RKJ Partners

Strategy 5: Consider Subordinated Debt as an Alternative to Equity Most CFOs are familiar with the two financing products: senior debt and equity. Probably the most exotic of the instruments is subordinated debt. While not a household name, subordinated debt has been around for over 25 years.

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Convertible Bonds in Today’s Economy

MergersCorp M&A International

Financial Times published an article stating that US companies dive into convertible debt to hold down interest costs. Furthermore, it stated that the boom in convertibles, as a type of bond is likely to continue this year as companies refinance a wave of maturing debt. in capital raise and paid 0% interest rate.

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Top 3 Growth Financing Options for Software Companies

Software Equity Group

There are several resources for growth capital: debt from a lender or financial institution, minority equity financing, or majority equity financing through a control transaction. Growth debt, also called venture debt, most often comes as a principal loan accompanied by an interest payment.

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Event-Driven Hedge Funds: The Best Home for Bankers Turned Investors?

Mergers and Inquisitions

They have their investment thesis and valuation, and the earnings announcement is the event that unlocks value… …but this is not what “event-driven” means in most cases. But if we’re wrong, and the spin-off doesn’t happen or gets done at a lower valuation, the parent company’s share price would fall by only 10%.”

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