Capital is the lifeblood of business. Without capital, you cannot continue to fund your daily operations. Raising money for a business is just the first step to get it off the ground. Beyond that, you’ll need to raise funds to keep it moving.
Capital raising in UAE
According to the U.S. Bureau of Labor Statistics, lack of capital is one of the leading reasons businesses fail to survive, with just 25 percent of businesses lasting past 15 years. Raising capital for your new venture is the initial order of business, so let’s dive into what it means and how to do it. What is capital? Capital is technically anything that can be quantified with a dollar figure within a business setup. A factory’s machinery counts as capital. Intellectual property could also be classified as a type of capital. However, most people use the capital for business in terms of the money they have in the bank. Financial capital is often the difference between success and failure, so let’s talk about how to go about raising funds.
Types of capital for business
Raising capital begins with understanding your options for injecting that vital liquidity into your business. Capital raising can come from a variety of sources. The right option for your company largely depends on your current circumstances and weighing the pros and cons of each option. Here are a few different types of capital.
Debt capital
Debt capital is the most common way startups get the money together to launch their businesses. The concept of debt capital is that you borrow money to raise the necessary funds.
Equity capital
Equity capital comes in two forms: private and public equity capital. Private and public equity capital comes in the form of shares in the company. The distinction is that a publicly traded company can be bought on the open market by anyone, whereas private equity is strictly traded among a closed group of investors.
Net earnings capital
The final way to raise the funds is by increasing your net earnings. In other words, rather than giving away part of your company or taking on debt, you’re working to improve your output and profitability. Net earnings capital is harder to come by because it’s typically powered by raising money in other ways to up your capacity and increase your reach.
How to raise money for a business
How do you go about raising capital if you are going into business for yourself? A complete understanding of capital raising is crucial to getting the funding needed to launch your new venture.
What questions we wil ask you:
- Your capital need
- A funding type
- Your business valuation
- Previous rounds of investments
Public relations and investor relations in MENA and UAE
Public relations and investor relations is an essential part of a business’s success. Whether you are seeking for investments, successfully raised funding, building a plant or trading some products at Middle East or in GCC, you will definitely need to be attentive to a creating of a thoughtful and detailed PR and IR strategy and its accurate implementation.
Fundraising in UAE and MENA region
We are supporting our clients that would like to start-up or to expand their business through internal growth or through acquisition, but they are facing a lack of the financial resources to fulfill these purposes. We have a large network of financial institutions, mezzanine and pension funds, wealthy private individuals and family offices that are ready to consider a variety of investments from private debt to equity participation in an acquisition.
Let’s discuss your task
For over 15 years we are helping companies to search for business and financial partners, funding and scaling of businesses. If you want to know more, contact us now.
