· Structuring Investment Proposals

Determining how to structure a specific investment proposal is often the most difficult challenge faced by a young company raising equity capital from investors. Once you determine how much money you need to raise, you have to determine what type of security to sell; common stock, preferred stock or convertible debt and then you have to determine how much of your company you are willing to give up to raise the needed funds. Depending on the circumstances you may have to offer equity kickers or sweeteners to your offering such as purchase warrants. When structuring an investment proposal you will need to consider or decide the following:

  • How much money to raise?
  • What type of security to sell?
  • What are the terms and conditions of the security?
  • How much of the company to sell?
  • What is the post money valuation of the company?
  • What should the price per share be?
  • Financial Scribe can help you with all of these decisions.