By AltFi on Tuesday 7 January 2014
GrowthCap is connecting institutional investors to established, development-stage businesses in need of growth capital.
Companies turning to GrowthCap will be looking to raise anything from $10 million to in excess of $75 million.The platform will host rapidly expanding private businesses, as opposed to start-ups. This focus is the key differentiating factor between GrowthCap and AngelList. Companies making use of the GrowthCap platform will be much deeper in the funding cycle than those using AngelList.
RJ Lumba, the founder of GrowthCap, said: “There are a variety of options available for those looking to raise early stage seed and angel funding, such as AngelList, but the more mature institutional growth capital market remains out of reach for the vast majority of companies, and existing solutions still centre on the costly and time-consuming model of hiring a traditional investment banker.”
Another of the site’s unique elements is the investor targeting tool. This tool may be used to access detailed profiles of all GrowthCap investors. Every investor has a specific set of preferences, argues GrowthCap, ranging from sector, to geography, investment size, security, level of board involvement, company stage and potential returns. Using the investor targeting tool, businesses can identify the most suitable financial partners for their company and pitch directly to them. The platform itself will target institutional investors and family offices, rather than individual accredited investors.
“Until now, private company owners and executives simply did not have an easy way to identify all the relevant investors interested in their sector, geography and business stage among other key attributes,” said Lumba.
An interesting twist, then, allowing the business to target the investor. It will be interesting to see if GrowthCap can establish themselves as a major force within the growth capital market. The platform launched yesterday to the tune of $50 million in live deals.