Even if you are not going public, we can assist with...

Commercial loans

This type of financing depends on sufficient net worth, income, assets or cash flow. It involves borrowing costs, but no sharing of equity in your business. Depending upon the facts, you may negotiate short-term lines of credit, commercial paper, term loans, accounts receivable and inventory financing or mortgage loans. Foreign funding sources most likely will require collateral and/or personal guarantee.

Venture capital

The sophisticated venture capitalist is generally interested in equity investment in companies that have significant growth or new technology potential and that ultimately plan to go public. Most will insist on having an active voice in the management of the company, which is often eneficial in added experience and reputation.

Private placement

A private placement of equity is similar to going public, and certain aspects of securities legislation often apply. Although you are not required to file a prospectus, you will usually have to prepare an offering memorandum, which is similar to a prospectus in many ways. Private placements will entail offering securities to a limited – usually sophisticated – number of investors who see growth potential in your company. The primary advantage of this type of financing is that it can be completed more quickly than the IPO process and at lower costs. However, such placements often result in a lower valuation of the company and a ceiling being placed on the total amount of capital that can be raised.

Joint venture and partnership

In dollar terms, a joint venture or investment partnership can result in favorably priced financing.  It can also bring in creative synergy and industry clout. But keep in mind that you may have to sacrifice a portion of your assets, the freedom to develop your own manufacturing or marketing capability, and possibly even the freedom to determine production levels or customer base.  

Merger & acquisition

There are alternative routes to taking your company public. In addition to the IPO, you may become a public company by amalgamating your private company with an existing public company. There are two ways to accomplish this: either merge with an operating company or acquire the majority of shares of an inactive public company and operate through it.

What does it take to get new funding?

Private and public fund managers require a certain level of due diligent such as business evaluation performed by licensed professionals. Fund managers review thousands of new applications everyday, a direct referral is the most effective channel to obtain new funding.  WP & Co., LLP has a strong network in banking, hedge fund and venture capitalist to arrange you for an interview when you are ready.