Financial structuring is the process of selecting the optimal mix of debt and equity, the two basic types of capital to finance a company’s operations. For an optimal capital structure to be achieved, market value maximization and cost of capital minimization must occur.
For startups, financial structuring is dire to surviving the early stages of the company, achieving growth, and maintaining stability. Aside from cyclical reasons, an effective financial structure will provide flexibility, lower financial burden, draw investors, and increase the value of the company.
Venture First works closely on a day-to-day basis with its CFO clients to understand their goals, opportunities, and challenges to form an optimal capital structure that fits their business. With its robust network of venture capital firms, private equity firms, family offices, and high net-worth individuals as well as banks and lenders, Venture First can effectively facilitate the process of forming an optimal capital structure. In addition to relationships, Venture First adds value to the financial structuring process in many other ways: