Private equity is basically money raised from high net-worth individuals or organisations that raise and manage shareholders’ money. They usually buy shares in private companies but may also buy equity in public companies with the ultimate intention of delisting the company from the stock exchange.
When can you get Private Equity?
When your business is in the early startup stage, you do not need so much money to get the idea off the ground. However, as it grows into the late startup stages, your funding needs will definitely increase. You may find yourself in need of private equity or strategic investors. One thing that you need to know from the outset is that private equity funding is only available for proven companies that have substantial earnings; not all companies can obtain private equity funding which is usually available for late stage startups in series C and D rounds. Nevertheless, it is important to know how and where to get private equity to fund your business when it’s at the right stage.
How to find private equity
Hiring a specialized bank with specialties in exit opportunities will go a long way in helping you secure private equity funding. Your attorney or accountant may also be in a position to connect you to a private equity fund. Similarly, a list of private equity funds is available on several sites including;
In addition, there are various private equity forums that you can follow. Some of them are discussed below.
Equity Forum assembles investors, entrepreneurs, investment professionals and money managers in America. It provides excellent private investment opportunities and is an ideal setting for the exchange of ideas, new business development, the location of capital sources, creation of deal flow and ultra-high end networking.
British Private Equity and Venture Capital Association (BVCA)
BVCA European Private Equity Forums are a long running series of events connecting venture capital and private equity fund managers in Europe with institutional investors across the globe. The forums are held exclusively for investment consultants and limited partners to gather insights, trends and opportunities and developments on the European market. Each forum features presentations and panel discussions covering such topics as regional and sector specialization, investment strategy, the changing needs and appetite of investors as well as fund performance. There are also one-on-one meetings. You can click here to get the upcoming events and venues.
While private equity could help you meet the financial needs of your business, there is a significant risk of losing control of your company. Once a private equity investor obtains majority ownership in the company, he may decide to kick you out of the management and bring in another person. If you feel ready for equity funding, we advise that you look at the Complete Guide to Equity Financing for better understanding.