It is our job to help companies with promising potential to raise funds and obtain enough financing for business development and growth. In addition, we believe that through a dedicated focus to building an extensive network of relationships with institutional and individual investors, corporations and a cadre of professionals including lawyers, bankers, accountants, and technology experts, our ability to access and transact with the most relevant investors will be a significant competitive advantage for our clients. We guide our clients through the entire capital raising process.

The financing & fundraising services include:

	Structuring the appropriate transaction
	Preparing a confidential descriptive memorandum
	Identifying an appropriate group of lenders and/or investors
	Marketing the transaction in a competitive environment to these lenders and/or investors
	Arranging and assisting with management presentations and the due diligence process
	Assisting our clients and their attorneys in negotiating the most favorable terms and mediating a smooth closing process

We attribute our success to the development of close relationships in the business and financial community that has proven helpful in the growth of our portfolio companies. Our relationships with numerous lenders and investment bankers allow us significant flexibility in arranging financings. Typically, financing comes in various combinations of debt and high yield securities provided by banks, investment banks and other financial institutions and equity provided by our private equity investors.

Undoubtedly, raising fund and getting financed are not easy at all. Many startup companies are constantly on the search for new capital and it is seldom easy to come by. Real entrepreneurs understand that raising money is a way of life. Contrary to the dreams of many entrepreneurs, initial financing can be the hardest part of launching their new business.

On the other hand, obtaining money for an entrepreneurial company is really pretty simple--it's just another sale. Your customer has something you want--their money. You have something they want, equity or a piece of the action of the potential growth of your enterprise. The key, as in all sales, is to determine the right price and close the sale. To do that, you have to develop a financial marketing mindset. Just as you would prepare a marketing program to sell your product or service, you need to prepare a financial marketing program. That means you prepare a business plan and develop and practice a verbal pitch, develop a marketing scheme, present the package, and close the sale. It takes intimate knowledge, unbounded enthusiasm, and a scuff-resistant ego.

The first thing to do is to put together a business plan to use as a fundraising tool. Second is the actual raising of the financing, or financial marketing. Each alternative to raising money requires a different approach to the business plan.

There are a number of sources of financing and a variety of forms of capital. Some are used to finance seed or startup companies while others are used for expansion. Startups are usually limited to the type of financing they can get, like personal savings used as equity or personally secured subordinated debt. On the other hand, companies with a proven track record have a much larger choice of financing alternatives--such as banks, venture capital firms, or public offerings.

For all intents and purposes, the entrepreneur has two basic choices when considering financing: debt or equity. In simple terms, debt is borrowed money secured in some fashion with some type of asset for collateral. Equity, on the other hand, is contributed capital. But most often new businesses require long-term debt or permanent equity capital to support major expansion and anticipated rapid growth. The advantage of borrowing is that it is a relatively simple process to arrange. It does not take a great deal of time and does not dilute equity ownership. The disadvantages are that it is a high-risk strategy as far as company growth is concerned, in that incurring debt subjects the company to a firm obligation, usually including the principals as cosigners. A downturn in business or an increase in interest rates could result in the inability to service debt payments with the consequences being that the co-signers have to personally pay the company's debt.

Unlike oil and water, debt, equity, self-funding, and external funding do mix well. In fact, it's an entrepreneurial secret. The best managed companies mix their financing sources and choices. Which to use, and when, becomes a matter of individual option, although there are some pretty well established precedents. Founders' personal investments, including both personal assets and family and friends' equity and loans, are usually what finances concept or seed stage companies.

To inquire more about our Financing & Fundraising services, email us at: companies@agiicorp.com