Guest blogger: Mark Witt, Equity Associate at Capital Solutions
Working directly with decision-makers
Over the past 20 plus years, I have developed relationships with key investment banking and venture capital providers. I work directly with the presidents of these firms and have partnered with them because of their ability to “get deals done.”
What a deal looks like
Our typical clients are startup companies that need from $500,000 and up and revenue producing companies seeking $2,500,000 and above. Once I connect with a prospective client, I ask them to provide a two- to three-page summary of their business model and the deal they are seeking.
After I study the summary and determine the best potential financing provider for them. I review the summary with the prospective fund’s president and we assess the viability of the deal for that provider. Usually, once I have received the summary, this process takes only a few days to a week.
Putting the deal together, keeping communications open
If we have a match between the client company, and their needs, and the provider, and their investor pool of sources, I call the client and let them know of our interest in the deal.
During that call, I describe how the process works, the approximate time it takes and any fees that might be involved. If the client wants to move forward, I put the client directly in contact with the potential provider so that we are all working together and have an open line of communication. My role is to assist both the client and the provider throughout the life of the deal and to keep the lines of communication open. I also keep referral sources in the loop.
Experience leads to access
The reason I have chosen to work with selective provider firms is they have closing rates that are much higher than industry average. We only take on clients who clearly convey the upside to the investment opportunity. Our equity group works strictly on a success fee basis upon closing.