- The obvious — the funds you need to grow your business
- Partners who can bring management expertise to your board
- Connections with other portfolio companies that can help you in a myriad of ways
- A reason to develop a clear exit strategy through acquisition or an IPO and preparation for that exit
Action Steps
The best contacts and resources to help you get it done
Learn the ins and outs
Private equity is such a complex, nuanced enterprise that if you want to make a good deal, you must drill down into the details and understand what you're getting into.I recommend: If you read nothing else, read Private Capital Survival Guide.
Subscribe to a directory
There are several directories, though not cheap, of all manner of private equity firms.I recommend: For free listings of private equity firms, visit PrivateEquity.com. Or check out Private Equity Info, which has one of the least expensive options around — it starts at $85 for a one-month subscription and offers a free demo of its online database, which you can search by industry, location and other key terms. Or try NVST's Capital Motion, a hybrid program that helps entrepreneurs present their companies to the private capital marketplace and allows you to search a private equity directory.
Get connected
Cold-calling venture capitalists and institutional investors may leave you, well, cold. It's best to get an introduction; one of the most tried-and-true ways to do so is to hire an investment banker, who will help you prepare your "book," which you'll use to present your business to investors.I recommend: PrivateEquity.com has a good list of investment banks, or check Google's list of investment banks. Or try an intermediary, an organization that links businesses with investors, such as consultancy Regulation D Resources.
Try the government
Believe it or not, federal and/or state government sources may be willing to invest in your business, especially if you can show that by doing so they'll help you create jobs in areas that need economic development.I recommend: Seek early stage funds from a Small Business Investment Company (SBIC). SBICs are public/private partnerships between a private investment firm and the Small Business Administration (SBA). SBICs provide equity financing, loans and management assistance. Get info on SBICs from the SBA or the National Association of Small Business Investment Companies' (NASBIC). To find an SBIC in your area or industry, search the NASBIC database.
Tips & Tactics
Helpful advice for making the most of this Guide
- Look for money long before you need it. You'll attract better partners and more funds if you're not desperate — not to mention getting better terms.
- In a presentation to investors, focus at least as much on risk and how you'll manage it as you do on your company's fabulous potential. Investors care deeply about risk.
- Raise enough capital. Rather than raising just enough to get to the next round, go further. Murphy's Law always applies in business forecasting, and it may take you longer than you think to reach that next level.
- Prepare early investors for the later dilution of their investments. Ask, "Wouldn't you rather have a 20 percent stake in $500 million than a 50 percent stake in $100 million?"
Need Startup Capital?
Contact active investors. Register to call or email investors.
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Contact active investors. Register to call or email investors.
www.unsecuredline.com
Private Equity Focus at McGladrey Capital Markets
Our Private Equity Focus Team is exclusively devoted to the needs of PE firms to ensure an understanding of your particular investment requirements.
Our Industries | Transactions
www.mcgladreycm.com
Our Private Equity Focus Team is exclusively devoted to the needs of PE firms to ensure an understanding of your particular investment requirements.
Our Industries | Transactions
www.mcgladreycm.com
Private Equity Firms Directory
Search by acquisition criteria. Portfolio companies, Professional bios and Emails.
Subscribe Now | View Demo | Contact Us
www.privateequityinfo.com
Search by acquisition criteria. Portfolio companies, Professional bios and Emails.
Subscribe Now | View Demo | Contact Us
www.privateequityinfo.com
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