After more than 40 years of experience as a San Diego Business Attorney I can share there are 3 proven strategies to raise investment capital for your business. My name is Dan Watkins, and I encourage you to seek legal advice before pursuing new investors or capital for any LLC or corporation. Bringing in new investors or business capital must be done in full accordance with federal and state law. There are substantial risks when raising business capital. Many securities violations (even criminal offenses) occur when well intentioned people attempt to raise money for their business without consulting the proven San Diego corporate lawyers at the Watkins Firm.
What are the 3 proven strategies to raise investment capital for your business in San Diego or anywhere across California? The first is by adding a new member or shareholder to your LLC or Corporation, often referred to as “Equity Financing.” This should be accomplished by creating or modifying the operating agreement for an LLC or shareholder agreement for a corporation. The investment must be properly structured and tied to an ownership position which usually includes voting rights.
The second method is through strategic partnerships, often with larger or more established corporate entities who are able to invest capital and other resources into your business or access to new vertical or geographic markets through revenue sharing, distribution and licensing agreements or joint venture.
The third of the 3 proven strategies to raise investment capital for your business is through an investment by an Angel Investor or Venture Capitalist (VC). This path involves the creation of a presentation or “pitch” demonstrating a viable value proposition, genuine market opportunity, existing market penetration and successes to date as well as company financials. It is important to be cautious to protect controlling interest in your company (now and in the future) and all you have worked so hard to build while trading some forms of input or management and a share of revenues until a benchmark is reached or a buy-out is accomplished.
Draw on the extensive experience gained across more than 40+ years of experience serving the business, science and tech, real estate and medical / healthcare communities here in San Diego and across California. The Watkins Firm can help to protect your interests and assist your company as you bring in new investors or money, and prepare the business for a new phase of growth and expansion. We will help to develop the necessary agreements and documents and guide you through the process to ensure that your interests are protected, and that you are not risking control of the company or future decision making when raising necessary business capital.
We’ve helped tens of thousands of businesses over our decades of service to the San Diego and California business community, and we will provide valuable advice and insight as you consider your options and take the actions necessary to bring new money into your company. Learn more about the 3 proven strategies to raise investment capital for your business. We invite you to review our podcast Episode 10 – The Importance of a Strong Corporate Attorney as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
