Wednesday, September 15, 2010

How much capital will it take to get the idea off the ground ?

There are a number of options to get to market. Simply stated we can acquire the requisite capabilities or develop them organically. Seed capital necessary for organic growth approximates $5-$10 Million USD. Acquisitions require case-by-case analysis and there are several stellar candidates in the market.

A third option is to enter into a join venture where there is an agreement with a partner to provide certain capabilities for a revenue share agreement. However this limits the investors ability to participate in a significant amount of upside associated with the opportunity.

If acquisition is favoured, there are several targets whose assets and capabilities would contribute significantly to the value proposition, which combined together, will significantly increase value to all stakeholders.

It really is a unique opportunity.

No comments:

Post a Comment