Small-Cap Fundraising Tips in Low-Rate Market
As we enter a period of lower interest rates, small cap companies will have greater access to capital. Raising cash will be easier than it has been for years, but the right approach is critical to cash reserves. Previously-dry sources of funding are now opening up, but executives need to position their company wisely to seize these opportunities and prioritize the right investors for their funding needs.
Prepare - The past few years have likely sharpened your presentation and pitching skills in a competitive funding landscape. Now is the time to reflect on those experiences and prepare for a new, potentially more intense fundraising period.
Take It When You Can - When companies need funding the most, it’s often the hardest to secure. On the other hand, when a company is excelling, investors may be lining up to get on board. While this dynamic makes it difficult to predict the ideal amount to raise, it’s essential to take advantage of opportunities when they arise, even if immediate funding isn’t critical.
Be Selective - If you’re fortunate enough to have your pick of investors, make sure to select those in it for the long haul. Consult an experienced IR professional who knows which potential stakeholders will stick with your business even when things aren’t going swimmingly.
Need help on an upcoming fund raise? Reach out to Jonathan Paterson (Jonathan.Paterson@Harbor-Access.com).
