Essentials of attracting private equity funding

81 total views, 2 views today

Accessing adequate capital to scale up a business can be a daunting task. Great ideas, innovation and market opportunity would waste in the absence of capital. Such Ideas, innovation and opportunity would migrate to firms with adequate capital or the capacity to attract it. Suffice to say that underpinned in most business failures is the lack of adequate funding. The entrepreneur as the driver of business must be able to anticipate funding requirements for the respective stages of the business as well as grow the business to attract the needed capital throughout its life. The early and growth stages of the business being the most critical to put the business on firm footing.

Most entrepreneurs are able to raise the needed capital to kick start their business but would usually face challenges raising capital to scale up. The question is usually whether the business will be able to “attract” the required funding for expansion. The key word, therefore, is “attract”. In other words, the business must be interesting enough to catch the attention of would-be investors with the financial war chest to take a bet and risk their funds on the business. This is typically the case with most institutional investors including private equity funds. Today, private equity funds are a good source of funding for firms that are seeking to grow and expand their business. Nigeria and other Africa countries have been beneficiaries of private equity investments. A good number of the private equity funds that are being raised on the continent are also seeking viable investment opportunities in Nigeria and across the African continent.

On this note, it would be important to share with entrepreneurs seeking to grow and expand their business in Nigeria, across West Africa and indeed the continent some … Read More...