Do you have a qualified business opportunity in Grande Prairie or are you looking to expand your existing company?
Bond Capital is a direct lender of mezzanine financing, private equity, subordinated debt and many other alternative forms of capital.
Grand Prairie does not have a lot of investors. However, there are a lot of outside investors interested in investing in companies in Grande Prairie. Depending on the type of business and the stage the business is in, there are a number of investment options. The following is a list of the kinds of investors and the types of businesses they typically invest in:
- FFF - "Three F" investors are otherwise known as friends, family and founders. This source of financing is typically accessed in the very early days of a start-up where the business is still being developed and has yet to acquire any companies. This stage of funding is very common in early technology start-ups.
- Angel Investors - Typically invest tens of thousands and perhaps even a few million dollars in a new venture. These investors are betting on the future potential of a company that is relatively new and has little financial history. These investors are looking for a very large return on investment and, as such, do a great deal of due diligence up-front in terms of getting to know the company and management before investing.
- Venture Capitalists - These are generally firms that manage the capital of a large number of investors. Venture Capital firms will invest several million dollars in a venture that has proven its competitive advantage is sustainable and which needs the capital to undergo dramatic growth. A typical Venture Capitalists will be looking for a greater than 25% return on their investment within 5 years.
- Public Equity - When a company goes public, it is able to sell shares on one of the North American or international stock markets. This source of capital is readily accessible when a company is doing well but is also considered to be somewhat expensive given that investors require at least a 25% return on investment.
- Banks - banks are a source of secure capital that comes at a negotiated rate over a given term. The benefit of using banks for capital is that they can provide competitive interest rates which can keep the cost of borrowing down. The disadvantage is that, because fof this low interest rate, banks require a lower level of risk and therefore arrange for a regular repayment schedule and may secure the rights to certain assets should a company default on its payments or go bankrupt.
- Mezzanine Debt - One of the least well know sources of finance and capital is mezzanine debt. These firms provide more flexible terms than banks and provide capital to more mature companies typically in the manufacturing, wholesale and business services sectors.
If your business is in need of investors, finance or capital, we can help.
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