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Àmbit Assessor, Newsletter, Featured, 22/04/16

How to complete the share capital


Your partners based on your size

One of the ways a company finances itself, probably the first and most natural, is through the contribution of resources from its shareholders; this is what we know as share capital. Contributions to capital (as well as share premiums and other similar mechanisms) should bear a reasonable relationship to the external resources used (for example, financing from financial institutions) and measure the commitment of the company's owners to their project or business plan.

But not all companies have the same type of partners; the partners change depending on their size, something that this graph illustrates very well:

graphic-ambit

If your company is just an idea in your head (it's in the seed stage), your natural partners are known as FFF ("family, friends, and fools"). It requires little explanation; there's nothing measurable about your company yet, so the people closest to you are the ones who can best believe in you. Generally, their contributions have a limited scope.

– Soon your company will reach the startup stage, because it will no longer be just an idea; you'll have the product or service developed, but you'll lack sales experience and profitability, and you'll need to professionalize some vital areas like marketing, finance, and management control. That's when you find your partners among Business Angels, people who, in addition to capital, want to contribute experience and knowledge. Crowdfunding has also developed in recent years, an alternative that involves the participation of many small investors, usually channeled through online platforms.

The next stage in your company's life is known as the development or growth phase. You have a complete, well-organized, and profitable company. Now your new partners will come either from venture capital or professional investors—people who will support the company's growth, primarily seeking a return on their investment.

– The next step, already in the expansion phase, are the organized markets, alternative (MAB / MARF) or official (Stock Exchange).

Companies are not obligated to follow all the phases, far from it. We live in a country of SMEs; most companies in our area reach maturity without needing to go public, for example, and that path requires not only "maturity" but also "size.".

LinkedIn twittertop Pau Riera,
General Manager, Financial Area

LinkedIn twittertop Àmbit Assesor

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