Fund Raising with Eurivex
High growth companies or existing companies that wish to expand their operations are most likely to be in need of funding assistance.
Previously such companies would raise the necessary funds from the banks, but in view of the reluctance of banks to lend or because of their policy of offering funds at high lending fees, many companies have decided to approach investors and raise funds directly.
The two most popular methods of raising funds are:
- Share listing
- Bond offering
Companies may issue shares or bonds directly to the investing public, but the more efficient method is to go through a recognized stock exchange and list the shares or bonds on such an exchange through which investors will have easier access to the financial instruments, enjoy security of transaction and be in a position to secure additional information on the Issuer.
Eurivex, a regulated EU Investment Firm is licensed to act as Nominated Advisor for listings on the MTF Market of the Cyprus Stock Exchange. You may see our details from the CSE site atHTTP://WWW.CSE.COM.CY/NEA/NOMINATEDADVISORS/ADVISORDETAILS.ASPX?NOMADID=26
Additionally, Eurivex is authorized and very active in arranging for listings on the MTF Market of the Vienna Stock Exchange. (HTTP://EN.WIENERBORSE.AT/)
Eurivex cooperates closely with specialist funding sources in arranging for funding for companies that utilize the listing services of Eurivex to list either on the Vienna Stock Exchange or the Cyprus Stock Exchange.
Each funding source with whom we cooperate has its own rules and criteria on how and under what circumstances they will provide funding.
Working closely with the clients, Eurivex identifies the funding needs of the clients and then makes the introduction to the funding sources which include major European global banks, private equity and venture capital as well as institutional funds.
The success of the fundraising will however depend on the:
- Quality of the issuer
- History and in which industry it is involved
- The Company’s previous track record, profitability and balance sheet size
- How much are the existing owners contributing into the project
- Where and how the proceeds of the funds will be used
- What is the return objectives
- The management team and members of the Board
- What contingency plans the Company has in the event of adverse market conditions
Some of the funding sources with whom Eurivex cooperates charge a monthly retainer in addition to a success fee, while others only apply a success fee.
Eurivex does not cooperate with funding sources who demand an introduction fee or other gimmicks, the objective of which is to secure up-front cash from the borrower before delivering the funding.
Many company CEO’s believe that after their company successfully lists, they can relax and simply wait for investors to find them and invest in their company shares or bonds. This is a wrong approach since there is no time to relax even after a listing.
For sure, by listing on a recognized stock exchange such as Vienna or Cyprus, the Company has made it easier for investors to be able to invest and trade in the company financial instruments, but the competition for funds and investor attention should never stop.
One of the most effective and cost-efficient methods to keep interest on a stock high and attract investor attention and funds is the use of social media networking, as well as traditional media outlets through which a company can remind investors of how it is achieving and surpassing its goals and delivering outstanding results.