First Round Funding has become one of the most important phases in a Company's development. Based on the terms that are negotiated, it can ultimately determine how successful a management team will be in growing the Company and achieving profitability, as well as maintaining control.
The Reverse Merger Funding team has advised many clients and participated in numerous first round funding transactions. We have been involved in
well over $100,000,000 of funding transactions. If your company is NOT a start-up and is looking for funding send us a request. Due to the number of requests we
receive we ask that you use this form to contact us. Submit Your
Request. We will respond promptly, usually within 2 or 3
days.
Reverse Merger Funding is quite flexible with the terms and deal structure when it comes to first round funding and even subsequent or follow on financing. We try to be the lead investor and provide bridge loan financing, often partnering with other hedge funds, asset based lenders or private investors we have done deals with over the years.
Private equity firms can come up with very complex term sheets and even
more complex closing documents. If certain milestones or revenue goals
aren't met, management will have to consider the implications that has
on the terms of their funding and how that will affect their subsequent
rounds of financing if the company requires additional capital.
A good business plan or executive summary is an important process in the first round funding stage. Once you submit that documentation to a potential funding source it is the first impression that the investor is going to have of your business. We all know how important first impressions can be, so make sure it conveys a sense of professionalism and presents your company in the best possible light to potential investors. On the other hand, a somewhat simple business plan with great financials is going to go sell itself much more than a very professional looking business plan with lousy financials.
Another think to keep in mind about first round funding is that in an optimal situation you would like to find a funding partner that will not just fund your company the first round, but second, third and fourth rounds as well. This assumes your company is in a growth pattern or making consecutive acquisitions. Reverse Merger Funding has assisted companies in multiple rounds of funding and looks for companies that fit a rapid growth model or seek to grow through several acquisitions, especially where economies of scale can increase net profit significantly.
We are interested in funding companies in just about any industry and have no restrictions; in other words we are not focused on one industry, like some private equity firms. Our focus is more on the fundamentals of the specific company we considering investing in to determine its time to profitability, if it is not already profitable. We also look to see if there are significant growth opportunities for that company in its specific industry. Two important factors for us are (1) is there a large growth potential for this company and (2) how much capital does the company need to achieve that growth.
We hope you have found this information helpful and will consider us as your First Round Funding Source.