Series financing refers to the different funding options available to public companies. These start from “Series A” and go up to “Series D” (sometimes even “Series E” and beyond). This article will focus on all aspects of Series D+ funding for public companies. So, brace yourself for the ultimate guide below!
Each of the Series A, B, C, D, and E funding rounds is assigned to the different stages of growth in a public company’s lifetime. Some businesses stop right after the initial “seed” funding round. Others extend beyond it to Series A or further to B, C, and D+, depending on the unique business needs.
There are two main reasons why public companies may pursue Series D funding:
- They are in search of a final push before an IPO or,
- Series C funding has not been sufficient for them to achieve the goals they set out to accomplish
We Have the Most Failsafe Method for Series D+ Funding
Series D Round is the fourth stage in financing business growth. The Series D+ Rounds are generally for financing unique situations like mergers and acquisitions. So it isn’t in the usual venture capital financing progression.
However, that doesn’t mean there are fewer opportunities for securing it. XCell Fund provides funding internally. That means we use our client company’s following resources:
- Savings,
- Revenues, or
- Liquidation of other assets to fund a new strategy
- Manufacturing
- Acquisitions
- Payroll
- Research and Development
- Product Inventory
And a lot of other vital moves initial raises failed to cover. Internal funding is a simple, direct way to obtain capital for growth as:
- It doesn’t require lengthy underwriting timelines or credit reports
- The cost of using internal capital is low
- It grants you more flexibility
- In addition, a business doesn’t need collateral when using its own resources
- And, you get to avoid the hassle of extra credit card or loan interest fees
But, as a business owner, you need to have a solid grasp of two things before using internal resources to fund growth:
- Your company’s financial health
- Working capital
We Have the Most Failsafe Method for Series D+ Funding
Not every investor is willing to provide Series D funding to public companies. Why? Because this type of funding comes with its own set of risks. Hence, XCell Fund helps you benefit from the resources already at your disposal.
XCell Fund’s experts have the best tips and tricks for maximizing gains from internal sources. Here are some options we leverage to create Series D+ funds:
XCell Fund’s experts have the best tips and tricks for maximizing gains from internal sources. Here are some options we leverage to create Series D+ funds:
- Convertible notes — issuing convertible bonds can help decrease negative sentiment around equity issuance. Companies benefit in two ways from this. First, by converting the bonds into equity, if the company is successful. Second, by issuing debt at lower interest rates than traditional bond offerings.
- Reg A’s — this refers to an exemption that grants small-cap companies the chance to sell their shares to the general public. Hence, making it possible for almost anyone to invest in a business through crowdfunding.
- Private placements — some advantages include reduced cost and time, less burdensome regulatory requirements, and the ability to remain a private company.
- Hybrid arrangements — include certain classes of preferred stock, trust preferred securities, convertible debt securities, debt securities with principal write-down features, and mandatorily convertible instruments.
By expertly leveraging these safe options, XCell Fund provides phenomenal Series D+ funding as far as our clients need.
What We Leveraged to Create the Best Financial Situation for Public Companies
Not every investor is willing to provide Series D funding to public companies. Why? Because this type of funding comes with its own set of risks. Hence, XCell Fund helps you benefit from the resources already at your disposal.
XCell Fund’s experts have the best tips and tricks for maximizing gains from internal sources. Here are some options we leverage to create Series D+ funds:
- Convertible notes — issuing convertible bonds can help decrease negative sentiment around equity issuance. Companies benefit in two ways from this. First, by converting the bonds into equity, if the company is successful. Second, by issuing debt at lower interest rates than traditional bond offerings.
- Reg A’s — this refers to an exemption that grants small-cap companies the chance to sell their shares to the general public. Hence, making it possible for almost anyone to invest in a business through crowdfunding.
- Private placements — some advantages include reduced cost and time, less burdensome regulatory requirements, and the ability to remain a private company.
- Hybrid arrangements — include certain classes of preferred stock, trust preferred securities, convertible debt securities, debt securities with principal write-down features, and mandatorily convertible instruments.
How XCell Bridges Communication Gap between Public Companies and Financiers
Communication is key to making the best business transactions. It clears all ambiguities and maturing ideas to boost businesses in the best way possible.
What XCell actually does to enhance communication patterns:
- XCell simplifies industrial jargon and eases the work of investors by not troubling them with loads of reading material.
- Investors are pretty busy business entities. They need everything put forward in a simplistic and understandable format. Hence, XCell effectively spares them from leafing through tons of paperwork. And we present them with easy-to-understand chunks of helpful information.
- XCell shares its client’s milestones and vital processes with investors through up-to-date media. That way, the chances of ambiguity and uncertainty are minimized. And both sides benefit from a positive mutual understanding.
- All information is shared with investors timely. That is because venture capitalists like to see tangible results. So they can lose faith in the company if they don’t receive info upfront. And this can create a whole host of complications and unwelcome problems.
- Hence communication plays a significant role. And it makes sure your company gets the most incredible Series D funding opportunities.The bottom line is:Deciding early on whether Series D+ funding is the right option will help you evaluate entrepreneurial prospects and decipher startup news. These funding rounds give outside investors the perfect opportunity to invest in a growing company. And in exchange, they get equity or partial ownership of that company. Between the Series A, B, C, and D+ rounds, investors make slightly different demands on the startup. So if you’re at a point where you think Series C (or even D) didn’t help you fulfill your corporate goals, come on over to XCell Fund. We have years of experience conducting funding rounds beyond the conventional Series C. If your business is interested in having XCell Fund participate or organize a Series D+ funding, contact us now.