Four Types of Capital Raise Companies To Raise Millions in 2023 – Natu Myers of Raises.com – Capital Raises
You know that there are four main types of capital raise companies that you can use to raise 10 million plus for your real estate, private equity fund, or maybe your mergers and acquisitions deal. And so these four key types of companies, you want to make sure that you stick to the end because the fourth and last type of company is a little known combination of all the three I’m going to walk through in this video.
And in the next few seconds, I’m just going to show you how you can actually use, especially this first type, you know, to raise capital when it comes to securing equity or debts. For your private equity deal. So the first type of capital raise company that many people may know is an investment bank. So an investment bank is a company that is registered with a governing country’s securities commission.
What this means is that there are a lot of rules and regulations. If people are raising equity and there are also rules and regulations that people cannot, you know, usually, you know, go through unless they work with a company that is allowed by their jurisdiction. For example. In the United States, you have the Securities and Exchange Commission, which prevents people from selling equity to investors without registering with the Securities and Exchange Commission and listing as a public, you know, publicly listed security, like Apple stock, for example, there are many people who what they do instead, they You know, sell through an exemption, which exempts people from registration requirements, meaning that you sell directly to investors who are accredited.
That’s the accredited investor exemption. And many commonwealth countries have the similar type of exemption and investment bank is an institution that is like a middleman that allows people to, that actually they’re actually registered to be able to sell equities directly through these exemptions.
And they also happen to be really good capital raise consultants because of what they do. They charge people, you know. Sometimes they charge people an upfront fee of like anywhere from five to five hundred thousand, believe it or not. And then they charge people a percentage and we’re from like one to 10 percent of all the capital raise is that they try to connect people to the investor and sell the deal on your behalf.
And so they are what you can classify as a really good capital raise company for your real estate or mergers and acquisitions, private equity deal. The second type of company is a consultant. So a consultant is it’s really vague term. So basically it’s kind of a gray area. So So then there’s some people that don’t register with the Securities Commission and what they do instead as an individual, they work on connecting people of investors without being registered.
It’s a really dangerous area to go into. So unless the person really knows what they’re doing and you know, there’s a clear and clear reason why, you know, they’re able to raise capital or maybe they’re raising debts, which isn’t as regulated, or maybe they’re in another country, which isn’t as regulated, you know, unless like the person has a really clear reason why they’re able to do it without needing to register.
with their local securities commission or to raising debts, then maybe stay clear of this folks. The third type of capital raise company usually like a platform. So sometimes you have people that are across between a consultant and an investment bank and they do a bit of a hybrid. So maybe they use technology, they use systems, they use, you know, some sort of platform to work on helping people raise capital.
And because there are many limitations of the old way of doing it in the traditional investment banking world. And there are also many limitations of the common way. People do it using consultants. And so sometimes there are a lot of platforms out there and then we’ll list them in, in description. If you take a look at them that help people raise capital and the fourth and final type of capital raise company is really you.
Yes, you and your company. So what you can do is, and what we tell a lot of people to do at our company raises. com sometimes is to get people to work with salespeople who work underneath your company. Let’s say you’re raising capital for a real estate private equity fund. So what you can do, you can actually hire salespeople underneath.
And you work with a company that gives you sales representatives and you can get them to work as full time people underneath your company, meaning that they don’t have to register, you know, to be a securities broker because they’re working underneath your company and you can get them to be full time employees on commission or with a small base salary and get them to do the selling for you, either to set appointments to investors or to sell investors completely on the phone for you.
So if you were to work with a company that could supply you this, this talent, almost like a. Placement agents, uh, or not placement agents, but a placement company, like an HR recruiting company and get sales people underneath your company that can are really good at selling investors in your deal. You know, then you can build a way to a pipeline of selling investors in your deal without you having to depend on an external agency.
So what do you think of the four types of capital raise companies? Do you, you know, is there one that you didn’t know about, or is there one that you disagree with, or is there one that you’re wanting to use? Comment below. And if you liked this video, just hit a like and click on the subscribe button. And if you actually.
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