Later Stage Funds

Do you want to invest in a promising venture with proven business viability?

 

Later Stage Funds are venture capitalists who invest in startup companies which are relatively mature and have shown tremendous revenue growth. They may or may not be generating profits yet.  At this stage, companies have usually been in the business for over two to three years and have established themselves in a niche market. Their product idea and basic viability have already been proven, and they've started commercial manufacturing and sales. A proper management team is in place, which usually consists of the owners themselves.


Until now they have been growing with the help of owner's capital or a maximum of one or two business angels/early stage capital funds. Such companies now need investment for sales and marketing activities, overseas expansion, major infrastructure investments or strategic acquisitions that can help them take the next leap forward.


Later Stage investors are usually the final stage of investors before a formal IPO offering to the public, and normally form a syndicate to provide funding above the 5-10 million dollar mark. The enterprise value at which these investors enter is much higher than the business angels or early stage funds. However, there is still a lot of potential value to be unlocked, by expanding the operations of the company. We work closely with start-up firms to understand their business model, the challenges they face and provide them with proper solutions to excel in their field.


Challenges

  • Their existing sources of funding have dried up, the business idea is no longer as novel, and there is a critical need to expand to get ahead of competition
  • The amount of funding required to expand is huge (much higher than seed capital funding)
  • There are competition firms also vying for the same pie of venture capital funding
  • The biggest challenge at this stage is to find a venture capitalist to provide a good valuation for the already established business

Solutions

  • Proprietary in-house database of venture capital firms and syndicates to help businesses expand
  • Help the entrepreneurs in performing a proper valuation of the company, by adopting the industry multiples and real option valuation models
  • Help the entrepreneurs in negotiating for the right value with the investors
  • Handholding for developing detailed market analysis and viability reports

Benefits

  • Professional business expansion plan that can be presented to investors
  • Guidance on avoiding pitfalls when pitching for investments
  • Proper negotiations with the investors to receive maximum value for the business
  • Access to the investment world and financial guidance to ensure that financing rounds are successfully completed

Sign up as a Later Stage Fund and learn more about projects that are best suited for your investment profile.