Benefits Of Using Advect’s Value Proposition For Capital Raising:

Our private placement approach to capital raising provides a number of benefits, which are ideal for highly customized solutions that can be extremely flexible to meet your financing objectives. The private placement market is a large, sophisticated market with a wide range of investors, who are willing to structure unique funding arrangements that fit your specific business needs. Our placement efforts take into consideration many factors, including:

  • Providing a high degree of flexibility in the quantum of capital raising (from smaller amounts up to $100M), with equity and/or debt arrangements.
  • Private investors are typically more patient than venture capitalists, often seeking a 10 to 20% return on investments over a longer term of 5 to 10 years.
  • Private placements incur much lower costs than seeking capital from venture capitalists, or going public via the IPO process.
  • A more expedient process for raising money than with venture capital markets.
  • Access to a broader spectrum of investors improves both the diversity of funding sources and the suitability of funding arrangements.
  • Direct negotiation between the target portfolio company and the investor (facilitated by Advect) permits highly tailored and flexible solutions that are mutually beneficial for all parties.
  • Pre-agreed success fees for capital raising (typically cash, or a combination of cash and equity, or retainer plus success fee), with no hidden fees or implicit expectations months or years after an investor arrangement is completed.

CAPITAL RAISING

Raising capital can be a lengthy, expensive and inefficient process, for both companies seeking capital and those providing capital. For companies in their growth phase, it can lead to frustration, and divert attention from the business and operational necessities. For investors, sifting through the many investment prospects to find the best investment options can be daunting.

Advect will help clients achieve their capital raising goals in a time and cost effective manner, and present investors with the most rewarding opportunities. We are constantly engaged with already successful, growing companies through current portfolio investments, and a network of global innovators and business leaders. This places us in a unique position to analyze, evaluate and subsequently shortlist only the best quality opportunities for our selected network of investment partners.

At the same time, our pool of investment partners allows us to match funding requirements with the appropriate investor, according to their target industry preferences, required investment size and geographic focus, which results in a much higher chance of achieving a successful investment. The principals of Advect provide effective “hands on” management of the entire investment process to facilitate open and effective information exchange between parties and to ensure that both sides are able to achieve a mutually satisfactory investment arrangement. The objective is always to achieve a situation where the investors and portfolio companies are able to become business partners that complement each other in a way that will allow them to take their combined business interests through to a successful exit or liquidity event.

Portfolio Company Perspective: Portfolio companies face the challenge of competing with many other investment opportunities for the attention of a relatively limited number of suitable investors. Our objective is to place investment opportunities with selected investors that are the most likely to be receptive, based on their investment preferences. We are able to offer access to a constantly growing network of active investors across the MENA region, Europe, Asia and the United States.

Entrepreneurs for Entrepreneurs: Unlike most financial intermediary firms, the Advect team consists of true entrepreneurs, who have successfully built, managed and sold their businesses and have extensive experience raising capital from an entrepreneurial perspective. This experience allows us to genuinely understand portfolio company needs and to speak the entrepreneur’s language in a way that focuses on the practical issues of achieving successful business funding, rather than confusing the situation with financial jargon. Our entrepreneurial background enables us at an early stage to identify the potential challenges our clients might face, and identify investment targets with strong growth potential, given the right level of funding. The combination of extensive business experience and entrepreneurial enthusiasm for innovative companies, together with a strong understanding of how investors think, will bring you thoroughly pre-qualified and exciting opportunities for profitable investments.

For Portfolio Companies, the Advect team provides:

  • An extensive investor database and relationships through our network of business associates, alliances with other intermediary firms, as well as through previous transactions.
  • Investment facilitation through the introduction of businesses requiring funding with potential investors and assisting in all aspects of the investment and relationship process.
  • The ability to raise capital at all levels.
  • A competitive and reasonable fee structure – our capital raising services are tailored to meet your exact requirements, and are typically based on a success fee approach.

For Investors, the Advect team provides:

  • Real world experience and understanding of the challenges of finding attractive and rewarding investment opportunities with companies that have strong potential for future growth and profitable exits.
  • A broad network of pre-qualified, high-potential, quality investment professionals and opportunities to optimise the pre-investment due diligence process, and to increase the potential return on their investment
  • Dedicated team members to work closely with investors to fully understand their investment preferences and criteria so that we are able to present only the opportunities that should be of specific interest to them.
  • Investment opportunities with early stage, as well as more developed growth businesses.
  • Highly attractive alternative investment opportunities other than property, stocks and mutual funds.