The business world is more competitive than ever. That’s especially true for entrepreneurs and privately owned businesses. Success depends on a number of factors, not the least of which is raising money and securing investors. What exactly is the best way to capitalize your business for desired growth and scale? On the subject of fundraising, many entrepreneurs are unaware of the rules that govern private placements in the U.S. It is always critical to proceed with caution as you entertain crucial decisions pertaining to capital generation.
Investment bankers who maintain their securities licenses and are affiliated with FINRA (Financial Industry Regulatory Authority) are required to follow rules that govern protocols for how to source and structure investment capital. Companies seeking capital hire investment bankers in order to leverage the broader understanding that bankers have of the capital markets. Investment bankers have multiple channels from which they can source capital, including: accredited investors, institutional investors (venture capital, private equity, hedge funds), family offices and corporations. This increases the likelihood of success for the issuer. With their expertise in structuring transactions, bankers bring sophistication and negotiating strength to businesses needing capital.