Welcome to Investors.ch
Your trusted partner in navigating the complex landscape of going public.
ABOUT US
Our platform is dedicated to connecting ambitious startups and emerging companies with tailored pathways to enter public markets through a reverse merger, a SPAC (Special Purpose Acquisition Company), or an ICO (Initial Coin Offering).
We seek companies that have moved beyond seed capital and are poised for the next stage of strategic growth.
Our mission is clear
To guide our clients toward securing strategic investment while minimizing shareholder and management dilution. Once readiness is achieved, we transition into a senior agreement with revised terms to help steer the company through the most suitable public offering route. Depending on the company’s operations, target markets, and strategic goals, this could be a reverse merger, SPAC, or ICO.
Investors.ch Limited is a UK corporation headquartered in London and is controlled by a Swiss-based investment banking firm. This firm will, in due course, take over certain assignments and introduce clients to local accredited institutional and private investors through one-on-one meetings or dedicated roadshows in Switzerland and key financial centers across Europe.
For those seeking Series A funding, Investors.ch provides comprehensive support to prepare for and secure a successful financing round. We engage qualifying companies through a junior agreement, involving a monthly fee and options at an assessed pre-money valuation. Our experienced team of mentors will be focusing on critical aspects such as team cohesion, structural evaluation, and project viability to attract ideal investors.
Going Public: Three Strategic Paths
Reverse Merger
Overview: A reverse merger involves a private company merging with an already publicly traded company, bypassing the traditional IPO process. This approach allows companies to become publicly listed without the extensive regulatory and financial preparation required by a traditional IPO.
Advantages
- Faster Market Entry: Companies can expedite their public listing, often completing the process in a matter of months compared to the years an IPO might take.
- Reduced Costs: Avoids the high fees associated with underwriters and extensive IPO roadshows.
- Management Retention: Provides current management with more control over the public transition, preserving the company’s strategic vision.
- Immediate Liquidity: Access to public market funding for expansion and operational growth.
Disadvantages
- Regulatory and Reporting Challenges: The combined company must comply with the same financial and operational disclosures as other public companies, which can introduce complex compliance requirements.
- Potential Legacy Issues: The public shell company may come with prior liabilities or financial problems that must be addressed.
- Market Perception: A reverse merger might be viewed with skepticism by investors if not managed transparently.
Notable Success Stories: Companies like Burger King, which utilized a reverse merger to return to public markets, demonstrated how this method can rejuvenate a brand. DraftKings also took advantage of a reverse merger to achieve significant growth and visibility in the sports betting market.
SPAC (Special Purpose Acquisition Company)
Overview: A SPAC is a company created specifically to raise capital through an IPO for the purpose of acquiring an existing private company. This “blank check” company has a set timeframe to find and merge with a target business.
Advantages
- Predictable Timeline: The process from announcement to merger can be relatively swift, providing more certainty compared to a traditional IPO.
- Negotiable Valuations: Private companies can negotiate their valuation directly with SPAC sponsors, potentially leading to favorable deal structures.
- Experienced Sponsors: SPACs often include experienced investors and industry experts who can lend credibility and strategic guidance.
- Access to Capital: Offers substantial funding for future growth and expansion, combined with the advantage of public status.
Disadvantages
- High Dilution: SPAC sponsors typically receive significant shares as part of the deal, which can dilute existing shareholders’ equity.
- Complex Structure: Structuring the transaction requires expertise, as it involves different stages and significant legal and financial considerations.
- Public Market Pressure: Like any public company, businesses that merge with SPACs must meet public investor expectations and regulatory requirements.
Notable Success Stories: Virgin Galactic, spearheaded by Richard Branson, utilized a SPAC to become the first publicly traded space tourism company, inspiring other space ventures. Joby Aviation leveraged a SPAC to bring its revolutionary electric vertical takeoff and landing (eVTOL) aircraft to the public market, positioning itself as a leader in the sustainable air mobility sector. The Zegna Group, an Italian luxury fashion house, also went public through a SPAC, showcasing how established brands in traditional industries can successfully use this pathway to scale operations and gain market exposure.
ICO (Initial Coin Offering)
Overview: An ICO is a method where a company raises capital by issuing digital tokens or cryptocurrency. This is often used by blockchain startups to fund innovative projects by tapping into the global network of crypto investors.
Advantages
- Global Reach: ICOs enable companies to attract investors from all over the world, by passing geographical and banking restrictions.
- Rapid Capital Raising: Companies can raise significant funds in a relatively short period, which is particularly beneficial for early-stage projects.
- Decentralized Funding: Unlike traditional fundraising, ICOs can be conducted without involving banks or traditional financial institutions.
- Innovative Business Models: The use of tokens allows for new business opportunities, such as creating decentralized platforms or ecosystems.
Disadvantages
- Regulatory Uncertainty: The legal landscape for ICOs varies greatly across jurisdictions, creating potential compliance risks.
- Market Volatility: Token prices can be highly volatile, impacting investor confidence and project stability.
- Investor Risk: Without proper regulation, investors may face scams or fraudulent projects.
Notable Success Stories: Ethereum, one of the most successful ICOs in history, raised funds to build its groundbreaking smart contract platform, now a cornerstone of blockchain technology. Filecoin leveraged an ICO to raise substantial capital, enabling it to develop its decentralized storage network and attract a strong user base. Tezos is another prominent example, using an ICO to secure significant funding and establish itself as a leading blockchain platform focused on smart contracts and decentralized governance.
Understanding Seed Capital and Series A Financing
Series A Seed Capital
- Overview: Seed capital is the initial funding used to start a business. This early-stage investment helps entrepreneurs develop their ideas into tangible products or services. Seed capital is often provided by the founders themselves, family, friends, or angel investors who believe in the potential of the project.
- Purpose: The primary use of seed capital is to fund activities such as market research, prototype development, and the formation of a business plan. It allows startups to build a foundation before seeking larger-scale funding.
- Sources: Common sources of seed capital include personal savings, crowdfunding platforms, angel investors, and early-stage venture capital firms.
- Risks and Considerations: Seed capital comes with high risk, as the business model and product viability may not yet be fully proven. Investors in this stage typically accept greater uncertainty in exchange for the potential of substantial returns if the business succeeds.
Series A Financing
- Overview: Series A financing is the first significant round of venture capital funding that a startup seeks after proving its concept and initial product-market fit. At this stage, the company usually has an established user base and consistent revenue streams and is looking to scale operations.
- Purpose: The main goal of Series A funding is to optimize product offerings, expand into new markets, and develop a more robust business model. It allows startups to hire additional team members, enhance technology, and implement strategic growth plans.
- Investors: Series A rounds often involve venture capital firms that specialize in early-stage investments. These investors are looking for companies with strong potential for high returns and scalable business models.
- Valuation and Structure: Companies in Series A typically negotiate a valuation based on their traction, projected growth, and competitive landscape. The structure may involve preferred equity, giving investors certain rights and privileges.
- Risks and Rewards: While Series A investors face less risk than seed investors, there is still significant uncertainty. However, successful Series A rounds position a company for future rounds of funding (Series B, C, etc.) or set it on the path to going public.
The Importance of a Well-Structured Executive and Business Plan
A meticulously crafted executive and business plan is essential for attracting top-tier investors and motivating them to commit at the highest possible valuation during a Series A funding round.
- At Investors.ch, we understand that this phase is crucial in defining your company’s future trajectory. A comprehensive, strategic plan not only showcases your startup’s potential but also instills confidence in investors, demonstrating that your management team is equipped with the vision and capability to scale successfully.
- Investors are discerning; they require assurance that their capital will be managed effectively and yield substantial returns. A well-structured plan serves as your first line of persuasion, illustrating market understanding, growth strategies, competitive advantages, and financial projections. At this pivotal stage, even minor missteps can lead to missed opportunities and unfavorable impressions, reducing your leverage and potentially driving down valuation.
- Investors.ch can assist you in developing your initial executive plan and expanding it into a comprehensive business plan. Our approach includes coaching management on key elements that resonate with investors. This preparation ensures that you convey the right message, avoid common pitfalls, and maximize every engagement with potential backers. Misjudging your readiness or asking for excessive funding without sufficient preparation can lead to a series of rejections, wasting precious seed capital on travel and meetings, while closing the door to valuable prospects.
- Our services are offered at an affordable rate, mindful of the limited budgets typically available at this stage. However, we guarantee that investing in this guidance will pay dividends, as it positions your startup to leverage every opportunity to secure optimal funding and growth prospects.
