Public Venture Capital

-

Public Venture Capital 

In the recent trends of capital raising, there is a strong and growing trend for creating what is now known as the public venture capital market ("Public VC").


It started because a lot of governments realize that they need to help the SMEs. By helping the SMEs, they can help them to grow the business, and as a result, they can improve the employment rate and contribute to the economy.


SMEs have always complained that they are very limited routes or difficult for them to raise money. They can go through the angels and venture capitalists route but may not be able to raise a lot of money and it can get very bureaucratic and hard to succeed. Even if you succeed, your hands are being tied down by contracts that make it hard to focus on growing your business.


Public VC is a venture stock market where individual investors, small-cap asset managers and family offices finance early-stage / emerging growth companies. There are a number of public VC markets such as TSXV or CSE at Canada, that allow early-stage / emerging growth companies to be able to raise capital and go public, based on principle-based listing standards (proper disclosure on operating and financials) instead of quantified minimum listing requirements (e.g. min. 300M / 150M market cap).


Raising multiple funding rounds post-public is more common with Public VC, i.e. Private Investment in Public Entity (PIPE).


As a result of going public, companies are able to improve their credibility, their branding equity value goes up, they are seen to be better regulated and governed, and thus are able to raise more money and also globalise their businesses.


Contact us for more information: partners@capitale.co

Comments

Post a Comment

Popular posts from this blog

Variable Capital Company (VCC)

-
Recently, there is a growing demand for ONSHORE fund structures. Funds are moving away from traditional OFFSHORE tax haven jurisdictions such as BVI and Cayman Islands, to ONSHORE jurisdictions such as Singapore (VCC Framework) and Hong Kong (Limited Partnership Fund), both of which have been building up their competitive edge in Fund Structures and Asset Management through various tax breaks, tax incentives and vast DTA networks. We are seeing more VC/PE funds and family offices setting up fund structures in Singapore via Variable Capital Company (VCC). As at 24 Nov 2020, 10 months since the VCC was launched in January 2020, there are already more than 150 VCCs set up. Why ONSHORE Fund Structure As an onshore structure which domiciled in Singapore obviously comes with advantages because if the fund manager is located here, investment professionals are on the ground, these lend very well to substance arguments (which are heatedly discussed in offshore structure). From a legal perspecti...
Read more

Capitale Advisory

-
Capitale Advisory consults with entrepreneurs in funding their growth stories through innovative market access and public venture capital strategies, to grow from start-ups to publicly traded companies.    Our services include:    (i)         Capital Raise:  Through understanding your strategic needs, we bridge your growth stories with our capital expertise across the debt and equity markets. For public companies, our solutions include structured debt/equity facilities, stock loans and private placements in various emerging markets.  We have a diverse network of institutional and high net worth accredited investors.    (ii)       Structuring:  We advise on a broad range of transactions including acquisitions, divestments, corporate reorganisations, financial restructuring and strategic alliances. Through the diversity of experience within the team, we aim to achieve an optima...
Read more