Capital Procurement & Valuations
All companies, unless you’re Apple Inc., regardless of age, maturity, or where they’re at in their life/evolutionary cycle, have capital requirements. In today’s markets, there are a plethora of ways to seek out and obtain capital, but one of the main things that we always tell our clients is that all money is not created equal, essentially that all money isn’t good money. Thus, very similar to how we operate our Mergers and Acquisitions
We advise our clients that capital procurement should be both a continuous and interactive process versus an opportunistic, impulsive, or emergency activity. Rogue’s responsibility to our clients is simple and straightforward: to create and execute a sound capital procurement strategy that is both continuous and flexible.
In terms of defining the stages of capital procurement in which we operate, Rogue exclusively focuses on obtaining funding for companies that are searching for early stage investment capital, which can be defined as either:
The type of financing used in the formation of a startup. Funding is provided by private investors—usually in exchange for an equity stake in the company or for a share in the profits of a product. Much of the seed capital a company raises may come from sources close to its founders including family, friends, other acquaintances, angel investors, and seed-stage venture capital firms.
Series A Funding
In this round, it’s essential to have a plan for developping a business model that will generate long-term profit. Typically, Series A rounds raise approximately $2 million to $15 million, but this number has increased on average due to high-tech industry valuations, or unicorns. In 2021, the median Series A funding was $10 million. In Series A funding, investors are not just looking for great ideas. Instead, they are looking for companies with great ideas and a strong strategy for turning that ideas into successful, money-making businesses.
Due to the fact that each capital procurement round has different requirements, Rogue both advises and collaborates with our clients to build out a business and financial strategy that takes into account certain thresholds and variables, unique to their business and industries, so that when they’re constantly evaluating their capital needs and when the time comes, being proactive about procuring the necessary resources.
Our Process for Capital Procurement is exactly the same as it is for Mergers & Acquisitions and is as follows:
A sound mergers and acquisition strategy can lead to exponential gains for your company, if executed correctly and remains a continuous process.
The first 2-3 months are spent on Strategy Development and Target Identification
A typical transaction usually ranges from 6-18 months before completion