DCIEcosystem
Posts: 3
Joined: Tue Oct 01, 2019 7:54 am

How to Raise Capital when an IPO isn't an option?

Mon Oct 07, 2019 9:17 am

Well, it is a well-known fact that Initial Public Offerings (IPOs) are the best way to raise capital, but realistically, it doesn't work for everyone, especially startups and small and medium-sized businesses.

So, what options ambitious companies have today to grow their business when IPO isn't an option?

A number of alternative fundraising routes exist today that are leveraged by businesses to raise capital:

Private Equity

What it is?

A private equity firm invests money in start-ups or emerging, profitable businesses. They expect high returns from the original investment that is capitalized by exiting the original assets or securities position.

Advantages and disadvantages

Advantages
  • A stable and robust investor that will support the business for the upcoming 3 to 5 years
    High Capital Allotment
    Mentoring support to the executives
Disadvantages
  • It requires giving up to 50% stake of the business.
    You might end up being influenced by the investors in the decision-making process diverting from the original vision for the interest of the investors.
Venture Capital

What is it:

Venture capital is a type of private equity. It is a legal form of an entity that aims to put together the capital sourced from firms or funds. This capital is normally invested in small and start-up companies that show high growth potential.

It is more or less similar to the concept of private equity, but with VCs, startups have an advantage. VCs mostly prefer growing business and only invest 50% in the equity available to diversify the portfolio risk.

Advantages
  • Large amounts of capital can be raised
    Help managing risk is provided
    Monthly payments are not required
    Personal assets don't need to be pledged
    Experienced leadership & advice are available
    Networking opportunities are provided
    Collaboration opportunities with industry experts & other startups are available
    Assistance with hiring & building a team is available
    Increased publicity & exposure are likely
    Help to raise subsequent rounds of funding is available
Disadvantages
  • VCs tend to take or share control over company decisions
    Securing Investment through VCs is time-consuming and long-winded
    Difficult to obtain VC company support, unlike private equity firms
    Founder ownership is reduced
    Finding investors can be distracting for founders
    Funding is relatively scarce & difficult to obtain
    The overall cost of financing is expensive
    Formal reporting structure & board of directors are required
    Extensive due diligence is required
    Business is expected to scale & grow rapidly
    Funds are released on a performance schedule
    Losing the business for founders is possible
    Leverage in negotiations is rare for startups
Digital Asset Investment

What is it?

An online investment platform for creating and launching offers, where people can invest in by purchasing digital assets offered by both public or private companies without geographical barriers.

This offers greater liquidity to both companies and investors. Legal compliance and security are also more when you raise capital through digital investment platforms, unlike alternative fundraising methods such as ICOs.

Advantages

Online automated investment ecosystem offers a cheaper, easier, faster and more efficient way to raise capital.
  • Eliminates unnecessary middleman between investors and companies.
    High liquidity and 24X7 trading facility for investors
    No geographical barriers
    Facility to offer fractional shares to investors through security tokens for businesses.
Disadvantages
  • Finding a suitable investment platform is a complex task
    Some platforms do not provide complete resources to manage the complete investment lifecycle
TAKE CONTROL OF YOUR CAPITAL RAISING PROCESS

As the creator of a Turnkey Digital Investment Ecosystem, we want to encourage ambitious and growing businesses to adopt the new way of raising capital through security token offering.

DCI Ecosystem Team largely believes that using our Open, Democratic, Decentralized, Cross-asset Investment Ecosystem will allow businesses to create digital assets and launch security token offerings (STO) easily without getting stuck into a lengthy paperwork process.

Instead of jumping into a cumbersome stock exchange process to raise capital, opting for DCI Ecosystem will help you to complete your initial funding rounds in just a few weeks.

SMEs, growing businesses will be able to track, analyze and monitor their STO performance through a powerful user dashboard.
Product and service providers (e.g. accountants, STO legal advisors, etc.) will be there to guide companies to complete their STO in a legal manner with compliance to local regulations.

DCI Ecosystem will help growing companies by offering the necessary tools and resources to support their investment journeys, enable communication with investors, offer tracking facility for the fundraising event through an online dashboard and much more.

To Know more please visit the DCI Ecosystem dot com

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Facebook: facebook [dot] com/dciecosystem

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Linkedin: linkedin [dot] com/company/dciecosystem

btcto200k
Nickel Bitcoiner
Nickel Bitcoiner
Posts: 13
Joined: Fri Nov 08, 2019 6:49 pm
Contact: Telegram

Re: How to Raise Capital when an IPO isn't an option?

Mon Nov 11, 2019 3:28 pm

Simple, make your own coin and do an ICO. Even better, do an IEO. Loads of money.

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