The Fortia Group’s Equity Capital Markets Advisory Group works on two types of equity financing: growth equity and structured equity.

There are many advantages and disadvantages of equity financing for companies seeking to raise capital. Some advantages include no repayment obligations and no additional financial burden. Some disadvantages include giving up a portion of company ownership and increased costs vs. debt equity due to increased risk.

Growth Equity is typically in the form of convertible preferred stock.  Clients typically are high growth companies with $15 million or more in revenue/ARR and demonstrated strong historical revenue growth.

Structured Equity is typically structured as redeemable (versus convertible) preferred stock with a PIK dividend and warrants, an has a target return of mid-teens for the investor resulting in a less dilutive financing for the issuer. Clients typically middle market companies with greater than $50 million in revenue and more than $20 million in EBITDA.

The experienced professionals in The Fortia Group’s Equity Capital Markets Advisory Group will be completely dedicated to you, offering a competitive advantage by providing critical market knowledge and input on valuations, potential investors, terms and the process. You stay focused on running your company, while Capstone’s team does the heavy lifting to execute your deal, including:

• developing marketing materials
• conducting due diligence
• investor outreach
• deal negotiation
• structural guidance

Typical investors for equity placements include:

• Late-stage Venture Funds
• Growth Equity Funds
• Private Equity Funds
• Structured Equity Funds
• Family Offices
• Crossover Buyers
• Sovereign Wealth Funds
• Fund of Funds
• Corporate Venture Funds