Financial Structuring,

What is Financial Structuring?

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. 

Why is Financial Structuring important for startups?

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.

Why Venture First?

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:

•       Comprehensive review of company and various situational factors
•       Clear and achievable improvement strategies to maximize valuation
•       Crafting of a target optimal capital stack
•       Development of an institutional-grade deck
•       Creation or augmentation of an in-depth financial model
•       Curation of a highly focused investor and/or lender target list
•       Build-out of an anticipatory data room
•       Market research and competitive analysis
•       Valuation and private transaction comparables
•       Introduction to banking relationships
•       Limited document review by general counsel and transaction professionals
•       Board and investor materials and communication to accompany process
•       Ongoing timely diligence support
•       Weekly management calls and streamlined communication