V
E N T U R E - C A P I T A L
B
R I D G E - F I N A N C I N G
I
P O
1. Venture Capital
Young, innovative, and fast-growing businesses are often insufficiently equipped
with funds for financing rapid growth. Existing credit lines have been
exhausted, new credit is not given due to a lack of securities, and financing
via the capital market, for example by issuing shares, is not possible for a
company of this size.
We have the right contact partner for such companies. We have
numerous contacts to renowned VC companies that are interested in investing with
up to 10,000,000 DM in developing companies in the form of an increase in
capital.
Only two percent of the companies searching for VC are able to obtain an
investment commitment of a VC company. That is why our partner is offering
developing companies the necessary support for meeting the high demands of VC
companies. The consultation services range from the optimal formation of
business plans to the professional approach of all suitable VC lenders.
2 Bridge-financing and IPO
2.1 General
Although there have been intermediate drops in market prices on the stock
exchange, the new market is still a huge success. It has developed at an
incredible pace into the leading Stock Exchange segment in Europe for young and
innovative growing companies.
Since young companies often show high initial losses or insufficient profit
retention to continue financing growth, many companies are scurrying to the New
Market. IPO is for many medium-sized companies with good growth potential the
right way to obtain the necessary capital sums. The new market gives these
companies the opportunity to finance reasonably so that they can develop new
markets and new products.
IPO on the new market is the ideal "connection" to venture capital
financing. A spin-off can be sensible in order to make use of the growing
chances that exist in a company.
In order to prepare the company for the IPO, many cases of bridge financing are
required.
2.2 Requirements
- For a successful IPO onto the new market, the following criteria must be
fulfilled:
- Above-average turnovers and profit perspectives, due to proven competitive
advantages, have to be presented.
- Management must possess high qualifications, so that they can meet the demands
of a dynamic company in every respect.
- The company must have at least 1.5 Mill. € and if possible have existed
three, however at least one year before it can go public. Special permission can
be obtained.
- The shares from the IPO capital increase have to make up at least 50% of the
issue volume.
- The free float must generally amount to at least 20% of the capital stock, and
would be preferable if it were 25% or more. For large issues, a portfolio
investment under 20% is permissible.
- The rendering of accounts has to be carried out according to the IAS or the
US-GAAP.
- Quarterly reports, annual financial statements, status reports, and Ad-Hoc
reports relevant to the stock exchange have to be announced to the public.
- At least one meeting with stock market analysts should take place each year.
The creation of a company calendar including all company appointments of the
business year is obligatory.
- Showing successful work in the sector of investor relations is voluntary,
however, is a very important prerequisite for developing a good share price.
BACK
last modified:
05/28/06 16:05