Equity Financing
When the two debt conditions are not present in the business, it is easier to obtain equity. Another advantage of equity is the risk-sharing aspect of equity.
According to the EBI SME unit publication, half of the SMEs in Egypt prefer equity financing, and it is the only option for ventures and startups. We can determine the type of financing based on the stage of the business and its performance.
Startups and Ventures
The first round of financing is usually from friends and family members. Thereafter, the challenges are the same as SMEs, Valuing the company, determine percentage shares and above all the economic benefit of the project.
What we do?
For entrepreneurs: We take a methodological approach that starts with the feasibility study and business plan study then extends to pitch decks and investment proposals.
Buyer side advisory services: Valuations, percentage of shares and capital structure, the feasibility of the project and its economical value.
For SMEs
The challenge is finding the investor, valuing the company and determining the percentage of shares required by the capital providers. The equity capital providers are interested in the economic benefit and/or upstream or downstream synergies.
Determining the kind of financing
In every business stage, the risks and the required return varies and hence has a different type of investor to approach.
Equity Financing
Equity Investor bares some of the business risks and offers more than financing. It enables entrepreneurs to assume more risks and benefit from the expertise and support of the investor. We enable entrepreneurs and investors by offering them accurate, reliable and punctual solutions from the seller side or the buyer side
Pre-Money & Post-Money valuations
Feasibility Studies
Executive summary and pitch decks
Sell-Side reports
Schedule free consultation
| Kind of financing/Characteristics | Seed – Startup | Series A or B | Series C – Mezzanine | Public |
| Business Stage | Idea – Prototype | Growth stage/Sales | Expansion | Maturity |
| Investor type, Source of funding | Family, Friends, Angel Investor | Venture Capital & Angel funds | Venture Capital, M&A, Strategic Investor | IPO, M&A |
| Average Amount | < $ 250,000 | $ 250,000 up to $ 5,000,000 | < $ 50,000,000 | $ 50,000,000 + |
| Valuation | None/very hard to value the idea | $ 750,000 up to $ 15,000,000 | Up to $ 100,000,000 | $ 100,000,000 + |
*As per the world major capital markets and the business stage, though the amounts vary depending on the geographic location and the strength of the currency. In Egypt, the amounts average the same but in Egyptian Pound.