The capital structure of a company defines how it finances its overall operations and growth by using different sources of funds.
Debt and equity are commonly part of that capital structure. Equity is a start-up’s lifeblood. And, just as with any other element of building a successful business — putting the right team in place, setting and hitting milestones, and effectively managing cash — developing your capital strategy is an important piece to get right.
In fact, a company’s capital structure is arguably one of the most important choices that a new start-up will have to make.
Start-up company founders need to aim to put in place a “clean” capital structure for their ventures.
This is particularly true for any start-up that will eventually seek outside investment.
Some of the “red flags” that investors watch out for include: Are there any unknown investors? Is the term sheet too complicated or inappropriate for the stage of the company? Is the company raising enough money? What’s the possibility of dilution?
With this in mind, in an upcoming session of our new Expert Education Program, Emergence financial Partner, Grant Thornton LLP, will provide entrepreneurs with an introduction to how to optimize their capital structure for future growth, and will discuss how a good capital structure can help attract investors to an emerging bioscience company.
The formal presentation will be followed a question and answer/ discussion period, and a cheese and wine networking session, generously sponsored by our hosts, Grant Thornton! To register, click here!
- DATE AND TIME:Wednesday, January 18, 2017 3:30 PM – 5:30 PM AST (including cheese & wine).
- LOCATION: Grant Thornton Boardroom, Grant Thornton LLP, 7th Floor, 98 Fitzroy Street, Charlottetown, PE. To register, click here! (Please note that seating is strictly limited and will be offered strictly on a first-come, first-served basis).
- Trevor Kennedy, CPA, CA – Partner, Advisory
- Darren MacAleer, BBA, CPA, CGA, CIM – Senior Associate, Advisory
- Travis Gallant, BBA, CPA, CA – Senior Manager, Tax
About Grant Thornton
Grant Thornton’s advisory and tax professionals are passionate about helping bio companies succeed. The start-up and early growth phases are often the most difficult period and require the owners and managers to educate themselves about many areas of business including accounting and finance. Grant Thornton’s team enjoys educating clients about these topics and helping them comply with stakeholder requirements. Grant Thornton is one of the world’s leading organizations of independent assurance, tax and advisory firms with over 31,000 Grant Thornton people across 100 countries around the world.
About the Expert Education Program
The Expert Education Program (EEP) is an initiative of the Emergence incubator. It is designed to deliver a range of value-adding educational roundtables, workshops and seminars to enhance the business skills of Canada’s bioscience and food entrepreneurs.
The Expert Education Program forms part of our Professional Service Provider Program, which provides support specifically to bio innovators and entrepreneurs.
Through the Professional Service Provider Program, Emergence has partnered with leading providers of professional financial, legal and IP services to support our clients’ growth.