Capital is crucial for entrepreneurs
Whilst the journey of each company is unique, all successful ventures are grown with universal financial building blocks. As a result entrepreneurs consume vast amounts of disparate financial services throughout the life of their company.
However the financial supply chain is highly inefficient leading to wasted time on financing instead of product development and growth.
The economics of start-ups do not suit mid/large investment banks yet lower market firms do not have the service diversity to fully support rapidly maturing companies.
As companies grow they command capital from different tiers of investors yet the equity and debt markets are disparate with little data integration between players.
Apart from top-tier investment banks, many financial service providers and funds are geographically focused and lack the international networks to assist entrepreneurs who are often operating on a global scale early on.
Building value by financing pivot
Funding milestones are events in the life cycle of a high growth business which significantly improve its valuation. By understanding the nature of pivot points First Penny seeks to accelerate the achievements of these businesses and generating outsized returns.
utilising a business model akin to merchant banks enables First Penny to:
deploy fast and timely capital through convertible instruments to bridge entrepreneurs to pivot points and lock in significant upside,
cornerstone large capital raises before leveraging the banks’ networks to fill out capital rounds with strategic and financial investors.
work with entrepreneurs to deploy capital through corporate development activities such as acquisitions and geographic expansion,
directly provide, or syndicate through a partner, debt capital efficiently to continue a company’s growth using non-dilutive terms.