At some point, every company that wants to grow will face the same question: how to raise capital to expand? Whether it's to launch a new product, enter a new market or acquire another company, raising funds is a challenge – but also a great opportunity.
In this article, you will understand how to raise capital through funds, what the most common types are, how to prepare your company to attract investors and what mistakes to avoid.
The role of Investment Funds
Investment funds are collective vehicles that pool resources from various investors to invest in companies with high growth potential.
By raising capital through a fund, the company gains not only money, but also additional capital, access to a strategic network and mentoring from the fund managers.
Main types of Funds
1. Venture Capital (VC) Funds
- Ideal for fast-growing startups.
- Provide capital, strategic support and close monitoring.
- Seek high returns in the medium/long term.
2. Private Equity (PE) Funds
- Recommended for more mature companies.
- They invest large amounts and often take on part of the management.
- They see opportunities for appreciation and future sales.
3. Real Estate Funds
- Focused on projects involving the incorporation, leasing or acquisition of real estate.
- Excellent option for companies with financial investments or structured projects.
4. Structured Funds
- Hybrid and customized models focused on specific sectors.
- Require robust governance and legal structure.
Step by step guide to raising capital with funds
1. Company Valuation
The first step is to understand how much your company is worth. An accurate valuation, such as the one we perform at BLCG, is essential to negotiate with investors safely.
2. Preparation of a Professional Business Plan
A complete business plan, with financial projections, growth strategies and market analysis, is mandatory.
3. Legal-Accounting Organization and Compliance
The company must have its accounting organized, tax obligations up to date and a clear corporate structure.
4. Definition of the Fundraising Structure
With the support of BLCG, we help define whether equity, debt, preferred shares or a mixed structure is best.
5. Presentation to the Fund
We prepare entrepreneurs for meetings with funds, organizing pitches, technical materials and independent commercial data.
What funds look for before investing
- Scalable growth potential
- Committed and committed team
- Attractive and validated market
- Governance and internal controls
- Realistic financial projections
- Possibility of exiting with profit (exit strategy)
Increase your chances by:
- Professionalizing management – Automating processes, organizing KPIs and demonstrating business expertise.
- Creating a clear corporate structure – Funds avoid companies with disputes between partners.
- Presenting a history of consistent results – Even with modest revenue, it is important to demonstrate stability and evolution.
- Be prepared for audits – Funds perform complete due diligence before investing.
Finally, remember that raising capital through funds may be the missing step for your company to grow safely, strategically and with specialized support. However, this process requires preparation, technical knowledge and a qualified team at your side.
If you want to find out if your company is ready to raise funds through funds, talk to us (insert phone number).
At BLCG Consulting, we work with the structuring, preparation and management of investment funds, helping companies become attractive for this type of investment.
