Helping New York State Businesses Obtain Needed Financial Capital
Businesses may need to raise additional capital to take full advantage of opportunities. While there are several entities that may be involved with financing — such as banks, angel investors and venture capitalists — their end goal is to get a return on their investment.
Working with a lawyer at DeCandido & Azachi, PLLC, who understands the legal procedures for corporate fundraising can help protect your company’s long-term financial outlook. As part of our business law services, we can assist companies with drafting private placement memorandums, compiling and presenting relevant disclosures as well as organizing a comprehensive investment package.
What Should I Consider When Deciding How Much Money To Raise?
No matter how much capital a business is looking to raise, how complex the package is or how many investors are involved, all businesses will need to engage in the following two actions:
- Corporate financial housekeeping. Businesses need to ensure their financial house is in order and have all financial documentation in place before seeking outside capital.
- Conducting a presentation of their company. Federal law outlines clear regulations for how they may present their company to investors, and what risks and potential issues they must disclose.
Going through this process, we will help you in figuring out how much money you need to get started. While you are thinking about how much money you will need to get started, remember that there will always be unexpected expenses. Try to plan your startup costs so that you will not lose ground because of something unanticipated.
Giving Businesses The Answers They Need About Financing
Raising business capital is one of the most challenging and concerning issues for many business owners. Our team understands this. This is why we provide thoughtful and coherent answers to our prospective clients’ many questions. In this segment, you can read a few frequently asked questions and answers that we have provided about funding.
What is the best strategy for reaching out to investors?
Identify investors who align with your industry and share your vision. Reach out through your network for warm introductions, attend relevant industry events, and consider professional social platforms. Timing is key; approach investors when you have a strong business case and are ready to present a clear opportunity for growth and return on investment.
What timeline should I aim for when raising business funding, and what are the key milestones?
Aim for a timeline that aligns with your business plan and growth strategy. Key milestones include preparing a detailed business plan, conducting market research, and having a solid pitch ready. It’s crucial to allow enough time to meet potential investors and for the due diligence process.
How can angel investors and venture capitalists help?
Any outside party investing in your business does so with the intent to earn a return on their investment. Getting an angel investor or venture capitalist on board can be a drawn-out process. Investors want a clear picture of the future of your business and may want a significant amount of control in making decisions for your company. Our business financing attorneys can help you set clear expectations through a contract so that you understand what your investors plan to get in return for their funding.
Is a business loan right for me?
Launching a new business can be both exciting and nerve-wracking. While you may look forward to independence, a new business can require a lot of money to get started. One of the ways to get your startup capital is through a business loan. A business loan can be a helpful starting block for your company. Often small-business owners are trying to focus on their core business but lack cashflow for daily operations. A loan can relieve some of the pressures arising from operating costs.
What is normal to expect during the process of raising business capital?
Expect the fundraising process to take longer than you initially anticipated. Be prepared for in-depth questioning about your business model, financials, and long-term vision. Rejection is common, so stay resilient. When you do find interested investors, due diligence and legal processes will follow before you receive any funding.
We know how important it is to raise capital to start your business. Our attorneys work closely with our clients throughout all phases of the corporate fundraising process.
Contact A Forest Hills Business Financing Lawyer To Learn More
For more information or to schedule an initial consultation with our business attorney, please call 718-690-7715. We also welcome your inquiries via email for businesses in Queens, Nassau County and throughout New York City.