Investment Services
Working capital is the lifeblood of any business and growth capital is the future lifeblood of any business. Attracting investment to grow a business can be a challenging and highly distracting process for any founders. Mandating a third party to take on the responsibility of managing the process can significantly reduce the impact on the business and also greatly increase the chances of success.
Rockbridge works with founders to achieve not only the required growth capital but also the perfect fit of equity partners and/or debt providers. One without the other can be counterproductive. In particular, Rockbridge can promote the opportunity to international investors, for example in China and the Middle East, through it’s global network.
- The process is as follows –
- Initial meeting to understand the business and establish the path that founders want to pursue.
- Rockbridge due diligence on company to look at financial status and establish the potential of the products and/or services.
- Engagement Letter signed between parties. Retainer begins.
- Work commences on forecast financial model, normally a five-year trajectory, based on the new investment capital target.
- Work begins on the business plan, putting a narrative behind the financial model.
- Launch to investors both internationally and in New Zealand.
- Initial expressions of interest from investors, meetings with founders and Rockbridge.
- Negotiation of Heads of Terms.
- Due Diligence and working alongside legal team to agree contracts between parties.
- Completion and investment into client company.
This process can take anywhere between six and twelve months. Ideally a client company will have all accounts and contractual arrangements up to date, improving the time frame to completion.
Rockbridge fees are based largely on the successful completion of the fund raise with a Fundraise Fee of 5% being charged on the investment quantum up to NZ$10m. This is only paid upon successful completion of the investment. A monthly retainer of $4000 is also charged, for six months, which is offset against the Fundraise Fee.