RAISE CAPITAL
CAPITAL.com.my - Entrepreneur Services

WE RAISE MONEY FOR GOOD IDEAS !           

Raising Business Capital

Through CAPITAL.com.my entrepreneurs with an extraordinary idea can be introduced to a circle of affluent investors: talented business angels who have built fortunes by starting and seeing ambitious business projects through to completion.

If you have a great idea with financial potential and interesting prospects, then let us introduce you and your plan to this circle of potential investors.

THE FIRST STEP we need from you as an Entrepreneur request for capital is a brief executive summary of your business proposal and your funding requirements. We are not looking for a work of art, but enough information to give us a preliminary feel for the type of business, whether it is likely to be suitable for grants / loans / private investors / venture capital funding or combination of the above.

Your EXECUTIVE SUMMARY should at least provide the following information:

  1. One line pitch of your business, how much financing you need and describe why the investment opportunity you are offering is so attractive (in terms of potential returns; minimum risk etc).

  2. Who is your market? Briefly discuss who you are selling the product or service to. What industry is it? How large of a market do they represent? Its market and profit potential.

  3. What is your revenue model? More simply, how do you expect to make money?

  4. Who is behind the company? “Bet on the jockey, not the horse” is a familiar saying among Investors. Tell them a little about you and your team’s background and achievements. If you have a strong advisory board, tell them who they are and what they have accomplished. This will also gives the investor confidence in your abilities to run your business and assist them to see how their skills, experience and contacts will compliment yours.

  5. Who is your competition? Don’t have any? Think again. Briefly discuss who they are and what they have accomplished. Successful competition can be an advantage-they are proof your business model and/or concept will work.

  6. What is your competitive advantage? Now that you’ve identified your competition, you need to effectively communicate how your company is different and why you have an advantage over them. A better distribution channel? Key partners? Proprietary technology?

  7. What are your growth plans? How much money have you invested in? and how much more do you need? How will you deploy the angel’s funds? How can an investor help? i.e. in additional to  capital injection, how will you use the angels skills and network?

  8. What is in it for the investor? In terms of shareholding, rate of return, role and exit route.

A GOOD INVESTMENT PROPOSAL should be able to answer the following questions from the Investor’s perspective:

  • How they can minimize their risk?
  • Why their shares will increase in value.?
  • What you think their shares will be worth in 3 years time, and why?
  • When they will be able to exit (MBO/Float/Trade Sales)?
  • Team: what is your background that shows you are capable of turning the investor's money into profit?
  • Market: what is unique / different about this, what about competition and entry barriers, status of IP right?
  • Financials: where is profit coming from, what's the margin, what's your burn rate, what do you need the money for?

Your response to these questions is your chance to impress the potential investors/lenders. Once ready, please email your business proposal directly to me:

If required, we can also sign a standard non-disclosure agreement (NDA) : an agreement which ensures full discretion and protects you against misuse of your idea. You can then safely send us the executive summary of your business plan.

RMEMBER: Business Angels usually decide against investing in a business for the following reasons:

  • No confidence in the business owner;
  • Limited growth prospects of the business;
  • Limited market for the product/service;
  • Proposed value of equity in the business is unrealistic;
  • Management's lack of expertise or talent necessary for success ;
  • The business depends totally on the owner’s skill.

Business and character references are sometimes required. Past business failure should not deter you from raising capital; the reasons for the failure can be taken into consideration.

If your plan passes the acid test, you will not only have access to capital, but also to extremely valuable advice from industrious and committed investors who can add knowledge and experience, visionary thinking, personal goodwill and their powerful network to your business.

Entrepreneur - more on raising capital

 
Next >