Capital Raising is the third core service provided by Ryuken Capital. The firm helps its clients achieve its funding objectives on both the debt and equity fronts. Funding can range from short-term working capital requirements to long-term project financing.
Key points on Capital Raising
Raising funds simply means establishing access to and developing relationships with financial counterparties willing to provide the required capital under agreed terms and conditions. Banks are usually the first counterparties that come to mind but these counterparties can also be alternative providers, venture capital firms, specialised funds, high net worth individuals etc.
The stage of development of a company will determine capital requirements. For example, a small start up with less than two years of trading history will have different needs from those of a large and well-established mid-cap.
Capital providers will in all cases require transparency on the risks involved. These risks will condition the cost of funding.
Ryuken Capital as your Capital Raising Partner
Ryuken Capital has access to several funding partners whose suitabilities will vary according to the objectives pursued. It is important to note that some counterparties will only be interested in funding specific sectors despite potentially higher rates of return elsewhere. Ryuken Capital believes that the cost of capital, although critical, should not be the only factor considered when it comes to choosing a funding partner especially with regard to the achievement of long-term objectives.
The Ryuken Framework on Capital Raising in Six Points
Initial discussion with the client to understand its business and associated funding requirements.
What will be the purpose of the funding? Is the client seeking to raise debt, equity or a combination of both?
What amount of capital is the client looking to raise? How urgent is the funding?
Does the client already have funding partners? What were the terms and conditions of previous capital raised?
Can the client provide an accurate description of its credit profile? Has the client ever been unable to repay debt contracted with loan providers?
What are the client's expectations regarding a funding partner? This goes beyond the price of capital.
If you wish to expand your possibilities on Capital Raising, please contact Ryuken Capital by emailing contact@ryukencapital.com
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