With so many political and societal shifts happening, businesses can’t afford to shoot from the hip when pursuing the acquisition of capital. That’s where a rare breed of specialized consultants comes into play.
Solomon RC Ali, CEO of Solomon RC Ali Corporation, which has helped businesses successfully raise more than $250 Million in structured investment capital, “It all starts with the initial consultation. If we elect to work with a business that is looking to raise capital, we educate that business on what lenders and investors look for, and why. We then do our due diligence and market research and we package that business to present to investors. Lastly, we tap into our vast pool of investors and lenders to make strategic, streamlined introductions that can result in raising capital for these businesses.”
According to Solomon, too many businesses don’t raise the capital they need due to their failure to see things from the investor or lender’s perspective.
“Most pre-funded businesses have very little education in how the money end of things works. They come to a pitch meeting with their dream and no capital, and they believe that their idea or business is worth more than the investor’s money is worth.”
He goes on to explain that many business owners dig their heels in and want to keep the lion’s share of the business, and they balk at giving up equity. What they fail to consider, he says, is the investor or bank’s point of view.
“Businesses are essentially asking an investor or banker to risk their money, and they are not willing to offer any significant collateral or equity in exchange for this risk. I always explain to businesses that if they currently own 100% of a business that is worth $1 Million, that is not nearly as profitable as owning 30% of a company with a $100 Million Dollar valuation, which is where we aim to bring these companies. Now your 30% equity stake is worth $30 Million.”
Solomon RC Ali Corporation has created a unique niche within the industry of raising capital. Rather than an accelerator or broker, the company acts as a consultant, and ultimately arranges capital for businesses by tapping into their vast network of investors and lenders.
“When we arrange capital for a business, we take an equity share in the business and add it to our portfolio,” explains, Solomon adding that “the goal is a clear exit strategy for investors with an eye on bringing these companies public.”