Capability
Equity Capital
Support for technology companies considering institutional equity capital for growth, expansion and strategic development.
Overview
Institutional equity is the most consequential capital a technology company takes on. It sets valuation expectations, governance, dilution and the shape of the shareholder register for years afterwards.
When equity is the right instrument
Equity suits businesses whose growth is ahead of their cash generation and whose value is created by investing into product, market entry and commercial scale. The question is rarely whether equity is available, but whether it is the appropriate instrument for the objective in front of the company.
Positioning the opportunity
Institutional investors evaluate technology businesses through a consistent lens: durability of revenue, quality of growth, efficiency of acquisition and defensibility of the underlying product. A credible equity story presents those characteristics honestly and in the language capital providers use.
Valuation and structure
Headline valuation is only one dimension of an equity outcome. Structure, preference, governance rights and the profile of the incoming shareholder often matter more to management over a full holding period.
Preparing management
Institutional processes reward preparation. Numbers must reconcile, the plan must be defensible under scrutiny, and management must be able to speak to the business with the same clarity in the tenth meeting as the first.
Running a focused process
Equity processes are won through relevance and momentum, not breadth. A concentrated set of well-briefed conversations, run to a clear timetable, protects management time and preserves the company's position.
Considerations for management teams
The questions that shape the outcome.
- The objective the capital is intended to achieve
- Quantum, timing and the runway the round should create
- Dilution tolerance and the existing shareholder position
- Governance and board composition after completion
- The profile of shareholder the business wants for the next stage
Working with Wrotham
Senior attention, throughout.
Engagements begin with a conversation about objectives rather than instruments. Understanding what the business is trying to achieve, and over what horizon, determines everything that follows.
We take a limited number of mandates so that each receives senior attention from beginning to end, and we are direct about timing, positioning and expectations from the outset.
Related
Other capabilities.
- Private CapitalAdvisory around private-market capital options across different stages of company development.
- Investor AccessConnecting relevant companies and capital providers where strategic and investment objectives align.
- Capital StrategyHelping management teams think through capital requirements, positioning and the broader financing landscape.
- Strategic CapitalCapital relationships that may provide strategic as well as financial value.
Discuss your capital strategy.
A confidential conversation about objectives, timing and the options available.