What is the best way to raise 25M EUR?

[2fire]

Dear OffshoreCorpTalk Members,

If you would want to raise some capital (25M EUR)
with the purpose of purchasing the manufacture
of related products to your main products,
which way would you do it?

 

[crassus54]

Where are you from?

 

[polonieth]

Most members couldn't raise 25 euros. Never mind 25 million. But I am sure they will give you some advice.

Surely you need to secure funding from private equity, VCs, or assistance from the manufacturer of your main products.

Or if they won't touch it, turn to crowdfunding . I saw the other day that Carwow are crowdfunding again, raised £3 million. Doesn't seem like a positive sign, though.

 

[saintjohnny]

Sorry to break it to you bud, but if you have to ask this question...

1. You're nowhere near ready to raise 25M €.
2. Nobody (private investor, family office, VC, private equity) will EVER give you 25M €.

Because to raise 25M € you need:

A. An extremely SOLID track record, and;
B. An extremely SOLID network

Which you clearly don't have. People with the capability to raise an 8-figure round can do so easily with a few texts to the right people.

 

[crassus54]

Sorry to break it to you bud, but if you have to ask this question...

1. You're nowhere near ready to raise 25M €.
2. Nobody (private investor, family office, VC, private equity) will EVER give you 25M €.

Because to raise 25M € you need:

A. An extremely SOLID track record, and;
B. An extremely SOLID network

Which you clearly don't have. People with the capability to raise an 8-figure round can do so easily with a few texts to the right people.

I was waiting for a reply, then I was going to answer this way. Either he is holding back, or is completely clueless.

 

[JohnnyDoe]

Your best chance is to buy a lottery ticket

 

[jafo]

Dear OffshoreCorpTalk Members,

If you would want to raise some capital (25M EUR)
with the purpose of purchasing the manufacture
of related products to your main products,
which way would you do it?

You are in Dubai (supposedly). I'm sure there are plenty of crypto bros there who can invest in your project. Have you tried putting an ad in the local newspaper?

 

[2fire]

First of all, thank you for all your replies.
Based on the answers I already have some valuable information

I would like to clarify my case a bit.

I built a company from zero more than 12 years ago, which produce and export products globally via distributors.

The company running profitably and has a growth of 20-30% yearly.

All profit is reinvested into expanding production which is co-funded by local bank and EU grants.

My wish is to purchase another profitable company which manufactures related products.
I would like to use my sales channels which will increase turnover.

I would like to obtain debt against the equity of the company which I want to purchase based on valuation.

Where are you from?

I am personally an EU citizen. The main company in CH, production in the EU.

Most members couldn't raise 25 euros. Never mind 25 million. But I am sure they will give you some advice.

Surely you need to secure funding from private equity, VCs, or assistance from the manufacturer of your main products.

Or if they won't touch it, turn to crowdfunding . I saw the other day that Carwow are crowdfunding again, raised £3 million. Doesn't seem like a positive sign, though.

From what I have seen in this forum, people talk about 6, 7, 8 figures.
I did not imagine that they could not raise 25 EUR.
I have been approached by some fund companies, but they want to invest a way bigger numbers and told me that we would not be able to absorb it.

Because to raise 25M € you need:
A. An extremely SOLID track record, and;
B. An extremely SOLID network

Which you clearly don't have. People with the capability to raise an 8-figure round can do so easily with a few texts to the right people.

Your reply is the best one. Thank you very much.

A. I have a 12-year record. How do you see SOLID track records?

B. I have hired a CFO with a SOLID network, but seems he just pulled money out of me :-(
I believe I should fire CFO and find someone else.

I was waiting for a reply, then I was going to answer this way. Either he is holding back, or is completely clueless.

Of course, I am completely clueless. Last 12 years I have been focusing on running a business.
To compensate for my lack of knowledge I hired a professional CFO, who seemed to look more into my own interests.

Your best chance is to buy a lottery ticket

You are in Dubai (supposedly). I'm sure there are plenty of crypto bros there who can invest in your project. Have you tried putting an ad in the local newspaper?

How does it work? Do you get crypto credit, as collateral equity of the company and the return fiat in EU? What kind of return crypto bros looking for?

 

[jafo]

First of all, thank you for all your replies.
Based on the answers I already have some valuable information

I would like to clarify my case a bit.

I built a company from zero more than 12 years ago, which produce and export products globally via distributors.

The company running profitably and has a growth of 20-30% yearly.

All profit is reinvested into expanding production which is co-funded by local bank and EU grants.

My wish is to purchase another profitable company which manufactures related products.
I would like to use my sales channels which will increase turnover.

I would like to obtain debt against the equity of the company which I want to purchase based on valuation.

This introduction would have been essential in getting a correct answer by those who really can provide one.

I have been approached by some fund companies, but they want to invest a way bigger numbers and told me that we would not be able to absorb it.

This is the way! I would jump on this opportunity if I were you.

I have hired a CFO with a SOLID network, but seems he just pulled money out of me :-(

I would have been SURPRISED if he didn't. Nobody knows your business better than you. Don't let ANYONE try to "CON"vince you differently!

Of course, I am completely clueless. Last 12 years I have been focusing on running a business.

You are so transparent and this makes absolutely perfect sense. Most people overlook this. You are painstakingly aware of your Circle Of Competence. Kudos to that!

How does it work? Do you get crypto credit, as collateral equity of the company and the return fiat in EU? What kind of return crypto bros looking for?

I can only speak for myself and my experience, hence my Circle of Competence. Many crypto bros (I'm not a crypto bro in that sense, just someone who is taking payment in crypto to facilitate my business transactions instead of using the banking system) have made a TON of money in crypto (they bought low or they have traded well) and they don't want to just cash out (yet) or have no way to cash out. These are the people I am referring to. How you will proceed is also a mystery to me because I don't do that. I have these people always offering me crypto for a piece of my business, but I don't need the money and I'm not sophisticated enough to do such deals. Sadly, these people will NOT invest in Europe, UAE, or the USA. They prefer to have "eyes" on their investment. Their aim is to provide capital to my customers/buyers so that my customers/buyers can buy more products from me. In this case, they are only interested in my customers/buyers who are in Latin America or the Caribbean.

Maybe @Don, @JohnnyDoe, or @Sols can further assist you. Unlike me, they are sophisticated and well-versed in these areas.

I'm answering you because you are a Mentor Group Silver member. Not sure how else I can assist you with additional information. The radius of my circle of competence is quite limited here.

Good luck & keep up the good work.

 

[Don]

Dear OffshoreCorpTalk Members,

If you would want to raise some capital (25M EUR)
with the purpose of purchasing the manufacture
of related products to your main products,
which way would you do it?

I remember a quite recent small bank IPO for 30M. They spent EUR 1M on everything including marketing the IPO. Do you have a 1M to throw away?
If yes, then it's not rocket science - spend money on marketing, and investment bankers, and reap the profits. But IPO's purpose is often not only to raise money, and an investment bank is not the only option for fundraising. It's important to weigh the options and find a suitable method.

You can actually raise money with far less expenditure. Some great advisers can help you with crafting a great presentation, outreach, investor due diligence, etc.

In general, you can break fundraising down into the following.

Option 1: Internal Raise

• You will spend countless hours simply researching the “right people” to contact.
• Once you have the “right people” you can only send so many outreach emails, LinkedIn connections, etc., to ensure you’re not hitting spam or getting blocked by the platform
• You will have to test out different methods and messaging to figure out what works
• Your business will be missing its most important asset YOU.

Option 2: Investment Bank

• They will charge you tens of thousands just to review your deal
• Once they ok your deal, they will continue to charge you on a monthly basis for their services
• They will only reach out to their existing network of institutional investors, which ranges from 10-100 institutions.
• Investment bankers are LAZY, I’m sure all of us have dealt with a lawyer and thought, “How is this speed of service delivery acceptable?”, with investment bankers, you can expect the same level of nonchalance and expediency (or lack thereof).

Option 3: Placement Agency

• Work with a specific group of mainly high-net-worth investors and angel investors who have already been exposed to HUNDREDS of their earlier deals.
• If their existing network doesn’t like the deal… too bad
• Placement Agencies are generally run by Agency owners with very little finance knowledge and a team of Virtual Assistants to do their grunt work.
  Basically, you’re dealing with amateurs. As some would say: “You get what you pay for” and with placement agencies, that is certainly the case.

 

[JohnLocke]

Most members couldn't raise 25 euros. Never mind 25 million. But I am sure they will give you some advice.

I can sense that you have really seen the light from such a statement. It's always foolish to underestimate other people and platforms. But I am sorry to hear that you are not able to raise 25 EUR - Hereby you have won 1 piece of Mentor Group Light membership for a month. It's worth 65 EUR and I hope it can help you find your way to the 25 EUR.

Enjoy.

 

[wellington]

Shitcoin?

 

[JohnnyDoe]

What are your revenues? Profits? TTM and historical numbers.
Do you have audited financial statements?
Are you ready to sell part of the company, and even to become a minority shareholder?

 

[saintjohnny]

Your reply is the best one. Thank you very much.

A. I have a 12-year record. How do you see SOLID track records?

B. I have hired a CFO with a SOLID network, but seems he just pulled money out of me :-(
I believe I should fire CFO and find someone else.

I'm glad you found it useful.

A. 12 years of what? My cousin has 12 years of experience punching holes. And an acquaintance of mine has only 2 years of (highly profitable) experience and recently closed a high 7-figure round. Time doesn't mean anything.

A solid track record consists of proven investor returns. Have you turned 10m into 20m before? Have you turned 25m into 50m? If yes, then you shouldn't have a hard time raising.

B. Agreed. Best of luck in your search.

 

[2fire]

Dear @jafo, @Don, @JohnnyDoe, @saintjohnny
I really appreciate sharing of all this information with me.
It is a priceless experience to discuss this topic with professionals at OffshoreCorpTalk.

Their aim is to provide capital to my customers/buyers so that my customers/buyers can buy more products from me. In this case, they are only interested in my customers/buyers who are in Latin America or the Caribbean.

Crypto Factoring. Very interesting
I hope one day maybe I should offer such things to my clients in LATAM. Is Panama friendly for such things or better to look into other countries?

I remember a quite recent small bank IPO for 30M. They spent EUR 1M on everything including marketing the IPO. Do you have a 1M to throw away?

Don’t you think that 3.3% is relatively very cheap? My CFO were asking about 10% from raised capital. I think if with 1M I can raise 30M, it is sounds reasonable and definitely not like “throwing away”. Do you think I would be able to buyback those shares later on or it is better to think about bonds?

Hereby you have won 1 piece of Mentor Group Light membership for a month. It's worth 65 EUR and I hope it can help you find your way to the 25 EUR.

I would like also to contribute.
Just made transfer with reference “2fire gift acc upg to (polonieth)”
Thank you @polonieth for raising interest to this topic.

Shitcoin?

Well I was thinking about ICO, but have no experience with that at all ‍
For me it sounds like some scam.

What are your revenues? Profits? TTM and historical numbers.
Do you have audited financial statements?
Are you ready to sell part of the company, and even to become a minority shareholder?

Revenue - 9M (2022), 8M (2021)
EBITDA - 2M (2022), 1.8M (2021)

My CFO requested to hired one of most trusted accounting firms in Zurich, which pulled out of me bunch of cash in the last few years. They have not managed any audits (while I was insisting them to do that). I am getting pretty much fed up about this, as I don’t feel that what they do will bring me anyway further then simple credit of about 1M in some bank.

Becoming a minority doesn’t make me afraid, if that will increase substantially company valuation. Let’s say my competitors have been sold somehow between 150 to 400M to some major players. I have no clue how they managed this. But i see that major competitors has on board major invest banks and they buys companies which produce related products what is eventually increases their revenue.

My goal to CFO was to figure out credits which will help me to have size of my production site similar to “sold competitors”. But so far, I figured out to self finance it.

As I mentioned earlier, I am curious to raise debt against equity of business which I want to buy. Let’s say business generate profit of 1M a year, what I would be able raise as a debt and how much I will need to add myself.

Here I want reference to quotes from Investment Matrix by @JohnLokhe

The majority of CASH arises from nothing! YEAH, you don’t believe that, you think you read wrong? Saving Banks and Private Banks are able using “Giral money creation” doing so, new money is created. This money is called FIAT-MONEY

The question is how to access it?

And an acquaintance of mine has only 2 years of (highly profitable) experience and recently closed a high 7-figure round. Time doesn't mean anything.

Can I buy to him/her Offshorecorptalk membership to share his/her experience with other members on how he/she does it?

A solid track record consists of proven investor returns. Have you turned 10m into 20m before? Have you turned 25m into 50m? If yes, then you shouldn't have a hard time raising.

Does yours acquaintance has consistent proven investor returns?

 

[crassus54]

Dear @jafo, @Don, @JohnnyDoe, @saintjohnny
I really appreciate sharing of all this information with me.
It is a priceless experience to discuss this topic with professionals at OffshoreCorpTalk.



Crypto Factoring. Very interesting
I hope one day maybe I should offer such things to my clients in LATAM. Is Panama friendly for such things or better to look into other countries?


Don’t you think that 3.3% is relatively very cheap? My CFO were asking about 10% from raised capital. I think if with 1M I can raise 30M, it is sounds reasonable and definitely not like “throwing away”. Do you think I would be able to buyback those shares later on or it is better to think about bonds?




I would like also to contribute.
Just made transfer with reference “2fire gift acc upg to (polonieth)”
Thank you @polonieth for raising interest to this topic.


Well I was thinking about ICO, but have no experience with that at all ‍
For me it sounds like some scam.


Revenue - 9M (2022), 8M (2021)
EBITDA - 2M (2022), 1.8M (2021)

My CFO requested to hired one of most trusted accounting firms in Zurich, which pulled out of me bunch of cash in the last few years. They have not managed any audits (while I was insisting them to do that). I am getting pretty much fed up about this, as I don’t feel that what they do will bring me anyway further then simple credit of about 1M in some bank.

Becoming a minority doesn’t make me afraid, if that will increase substantially company valuation. Let’s say my competitors have been sold somehow between 150 to 400M to some major players. I have no clue how they managed this. But i see that major competitors has on board major invest banks and they buys companies which produce related products what is eventually increases their revenue.

My goal to CFO was to figure out credits which will help me to have size of my production site similar to “sold competitors”. But so far, I figured out to self finance it.

As I mentioned earlier, I am curious to raise debt against equity of business which I want to buy. Let’s say business generate profit of 1M a year, what I would be able raise as a debt and how much I will need to add myself.

Here I want reference to quotes from Investment Matrix by @JohnLokhe

The question is how to access it?



Can I buy to him/her Offshorecorptalk membership to share his/her experience with other members on how he/she does it?



Does yours acquaintance has consistent proven investor returns?

Mea culpa, your original message was vague, and so I made some unsubstantiated assumptions. Good luck with your future endeavours.

 

[JohnnyDoe]

Where is your business located?
How can your company still be in existence without audits? They are legally required almost everywhere nowadays.
Did you talk to your current bank about your project? They should know your business and might be in the best position to help you.

 

[Don]

Don’t you think that 3.3% is relatively very cheap? My CFO were asking about 10% from raised capital. I think if with 1M I can raise 30M, it is sounds reasonable and definitely not like “throwing away”. Do you think I would be able to buyback those shares later on or it is better to think about bonds?

Its hard to say since you provided very little information about your business.
Whatever your selling or buying the value and price matter.
If you already think about buying back shares it doesn't look like you want to go public.

 

[GPT]

In order to pitch your idea you need to find a way in to get to pitch to the wealthy.

The above is a network thing. Find people with a network. Switzerland imo isn’t really ready for private initiatives.

Imagine for one moment that you have an “in” to pitch to the wealthy.

How will you pitch is the first question. Someone that introduces you doesn’t want to be embarrassed in front of their peers. In other words “can you pitch” or “do you even know how to pitch”. Hint: a slick PowerPoint or a pitch deck is not pitching.

The other main thing to think about is “what is in it for them”. What assurances can you give? And are prepared to give up a percentage of the company?

Furthermore, and you satisfy that criteria, you have an active company. Make your annual accounts investor ready. Most important question there is, do you make consistent profits?

Back to the beginning. You better start networking. A lot. The rest you can work on in the mean time.

Owh and in the right networks 25M isn’t that much…

 

[JohnnyDoe]

How will you pitch is the first question. Someone that introduces you doesn’t want to be embarrassed in front of their peers. In other words “can you pitch” or “do you even know how to pitch”. Hint: a slick PowerPoint or a pitch deck is not pitching.

The “straight line system” by Jordan Belfort is genius.
OP should learn from it. In this brief thread he has appeared neither sharp nor an authority in his field. In fact, he went to Uranus with the story of his CFO. And when you go to Uranus your prospect is lost.