FSE Listings

Bridge Capital and Frankfurt Listings – Go Public in the EU and Raise Capital in Euros

Many companies have come to FSE Listings Inc over the past few months based on the gimmicks of other firms claiming to give Bridge Capital to firms or Prelisting Capital. However, many of these people ended up just paying for documents and not getting any capital.

Albeit, documents such as Equity Lines of Credit often cannot be used until the company has been listed with the Frankfurt Stock Exchange, however, prelisting costs are covered by the Companies. This is not the real bridge loans or bridge capital you are looking for, and as a novice to capital markets stay away from the equity positions being given to merger law, reverse merger, joint venture partners in the go public arena as you try to take yourself public to raise capital on the Frankfurt Stock Exchange.

What type of Bridge Capital should you be looking for?

Bridge capital is exactly that, it’s the capital that fills the void when you cannot take capital out of your cash flow, its either a loan or capital investment into your firm for equity to bridge your business while advancing, going public, and listing ultimately to get further financing.

In order to do this, it comes down to the structure of your business:

–          Shares issued in the company

–          Jurisdiction of Incorporation

–          Documentation Required to raise capital

–          Investor Qualifications for your type of business

–          The price and dilution at this early stage or Interest

Getting the 500,000 euro capital or more before listing

If you are looking for bridge capital than you run a business. In order to qualify for the Frankfurt Stock Exchange you require at least 500,000 euro in capital, its best to start the company off with this amount. Ideally, you can be introduced and qualify to receive this type of Venture Capital for your venture. Some ventures can get bridge capital in access of 2 million euro depending on their business maturity and the timing of which they need the full amount. Getting this capital BEFORE listing is true bridge capital.

Getting Equity Investments Before and After You Go Public

The most important part of getting investment is not giving up too much of your business for the activity of raising capital, but rather for the performance of the introductions. Anyone who asks for 1.5% to 5% of your business just to raise the capital or for a commitment, or to take your firm public has the hidden agenda of selling their percentage immediately and is not a serious capital firm.

A real equity firm and bridge capital firm would ask for a percentage only based on the success of bringing the required capital to the firm or based on key milestones. There is a HUGE difference, as one is paid when you get paid, the other where you give a percentage upfront is based often on non-performance. There is nothing to motivate them to raise capital for you if you give them the shares and pay fees upfront.  They are not real Equity Partners, they didn’t pay their way. Make sure people pay their way, because if they pay nothing for their stock, that is what your stock will be worth at the end of the day… as they sell without consideration of your business and commitments.

Ethical Structure: Don’t reinvent the wheel, ask FSE Listings

By building a corporate structure, documents, website, and offering properly you can access enormous amounts of capital without giving up any of your company for free! When I say for free, I mean nothing to consultants, nothing to service providers, nothing to finders and brokers! Get the capital by building a sound structure and having the investment come into a properly structured deal that makes sense. Once you have the capital, whether its 500,000 euro or 2 million euro, you can take the step of giving the shareholders an exit on the Frankfurt Stock Exchange as well as find institutional investment through roadshows and high-level industry introductions.

FSE Listings Inc will not sell you the farm, we will help you build the farm…

If you are interested in discussing whether your company qualifies to get listed and financed contact info@fselistings.com.