Why consider raising funds?

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1. What is a fundraiser?

Fundraising is a financing operation that involves bringing new investors into the capital of a company. These investors, called Business Angels or venture capitalists (for higher amounts), inject money into the company in exchange for shares or shares in the company's share capital.

Fundraising is very often used by start-ups, which have a high potential for growth from the start. However, it is also of great interest for companies with high profitability, especially in order to carry out a large-scale project, such as an internationalization of the activity.

It can take various forms: IPO, crowdfunding also called crowdfunding in particular the Crowd-equity, or even via Initial Coin Offering (fundraising that works through the issuance of digital assets — Tokens — exchangeable for cryptocurrencies).

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2. The objectives of a fundraiser

The main objective of a fundraiser is to accelerate the growth of the company.

Fundraising can be done at the beginning of the activity, the constitution ofseed capital can make it possible to finance the start-up and the first needs of the entrepreneur's activity.

It can also be done during activity, in order to constitute development capital which will accelerate the growth of the company, or the start-up.

Therefore, the question of raising funds must, for example, arise when an ambitious project requires sources of financing other than traditional sources (banking, public aid, etc.).

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3. What are the advantages of raising funds?

Fundraising has many advantages that are not found in traditional financing methods.

First, because of the entry of new investors into the share capital, Fundraising does not involve a repayment of the borrowed capital, or related interests. Les Business Angels or venture capitalists are paid through possible dividend payments, or at the time of the resale of their shares, on the capital gain achieved.

In addition, this type of capital raising relieves the entrepreneur or company from providing personal guarantees (for example a bond) or real guarantees (mortgage, pledge, etc.).

So the company has no debt to its investors and its own funds are strengthened by the raising of funds.

Second, fundraising brings much more to the company than just financial support. Indeed, the new investor can bring other elements that are just as essential to the start or development of the activity: know-how, expertise, skills, a network or advice of various kinds.

These non-exhaustive elements highlight the benefits that fundraising can have on the development of a company's activity, and in particular a start-up.

However, entrepreneurs should not lose sight of the fact that multiplying the number of shareholders can be dangerous, especially with regard to subsequent decision-making. In fact, following the raising of funds, investors become shareholders of the company and therefore have the voting rights provided for by the articles of association or by the shareholder agreement.

Thus, the entrepreneur must be very attentive to the person of the investor and to the skills that the investor could put at the service of the development of the start-up or the company.

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4. Prepare your fundraisers with Axiocap!

At the stage of preparing for the fundraising, with Axiocap it will be possible to provide future potential investors A capitalization table clean, updated according to securities transactions recorded on the blockchain. This real-time update constitutes a significant saving of time, which allows project leaders to focus on the core of their fundraising campaign.

In addition, the Axiocap tool has several advantages for your future fundraising:

• A simulator makes it possible to visualize the distribution of the share capital according to the amount of the fundraising and the proportion of capital sold;
• The capitalization table is automatically updated according to the information entered in the simulator;
• Grace to the dematerialized title movement registers, it is in particular possible to carry out capital increases, or even to issue unlisted financial securities, which are not simple or preferential shares (share warrants, warrants, simple or convertible bonds...). As soon as stock movements are recorded, the capitalization table will again be automatically updated.

Finally, the platform also makes it possible to centralize the documents necessary for fundraising (Business plan, capitalization table, the Termsheets...) in a secure digital safe. These documents can then very easily be sent to interested investors.

And that's not all, Axicoap offers many other innovative features that will make your daily life easier: come and discover them in creating your account here !