Fundraising Services

 Why Raise Capital?
Companies raise venture capital for a wide range of reasons including to:
• Hire human capital
• Grow the company (sales and marketing) and acquire market share
• Have a competitive advantage (more nimble in the market place)
• Provide funding for working capital and to build cash reserves
• Enhance credit and borrowing status (use equity to get debt)
• Launch new products and provide investment for new initiatives
• To provide development funding and project funding (eg. for mining tenements)
• Fund acquisitions and joint venture partners
• Fund capital investment and expansion (project finance)
• Retire debt / reduce balance sheet gearing
• Increase profit by reducing interest costs
• Match grants funding
• Exit the business gradually by selling down shares
• Negotiate with stakeholders (ie. bring money to the table)
• Replace shareholders
Methods of Capital Raising
In Australia raising capital is governed by the Corporations Act and generally involves two options – one via Disclosure and the other via Non-Disclosure. Equity capital is raised via the issuing of shares for cash. Raising equity capital via Disclosure requires the company to issue an Offer Information Statement (OIS) or a Prospectus. While Disclosure option is a traditional area of investment banks, most of our clients engage our services through the Non-Disclosure method, due to prohibitive costs, complexities and requirements of the Disclosure method.
Non-Disclosure Method – A Small Scale Offer
Under a Small Scale Offer, a company can raise up to $2m and can only have 20 retail investors every (rolling) 12 months. The 20 retail investor rule is sometimes referred to as the „20/12 rule”, ie 20 retail investors every 12 months. A Class Order which is a legal provision, also allows companies to raise up to $5m if the capital fund raising is managed via a Class Order Operator, like us.
Non-Disclosure Method - An Excluded Offer
Under an Excluded Offer, a Company cannot approach „retail investors”,and can only approach sophisticated and professional investors. Under an Excluded offer the company can generally raise up to $10m but are restricted on who they can approach.
The Fundraising Process
In order to assess your opportunities to raise money with private investors we will need answers to following initial questions :
• What does the company do?
• How does the company make money?
• Who is running the company?
• How the company has been valued?
• How do they invest?
• How do they safely exit their investments?
The Equity Capital Raising Process involves a number of important steps that include:
• Submitting the Capital Raising Form
• Discussing with us your business strategy and funding requirements
• Engage us to act for you in terms of providing business advisory and capital finance raising services
• Submit due diligence information for Admissions Committee
• Finalise financial forecasts, share capital structure and offer document
• Hold a Discovery Meeting to explore investor distribution strategies
• Submit offer document to Listing Committee
• Distribute to investors networks while in VIP Mode
• Run public relations and investor relations activities
• Go live on the Primary Board
• Distribute and liaise with investors
• Execute on company milestones with monies raised
To get started in raising capital for your firm, please contact us and request the Capital Raising Form. We will assess money raising possibilities for your
particular offer.

phone: +61 405 506 152 | | WWW.PTGCAPITAL.COM