If you want to attract capital, don’t think local but global
Croatian entrepreneurs often have excellent ideas and projects however their development is hampered due to limited access to capital. The Croatian Chamber of Commerce has organised a seminar which presents alternative way to finance startups, what sort of financing is the right solution for my company? Participants attending the seminar were advised that if they want to attract capital they should not be thinking locally, but globally.
„The standard practice when considering money to open a company is to go to a bank while in the global business world banks are considered to be the last option. If your are a starter, a small company that is just embarking in the business world then you are often not interesting for banks. That is why today we are presenting alternative ways of financing because the key in modern business is to quickly come to some capital. Venture capital (VC) and private equity funds (PE) do not look to see if you are small or large. They are looking to see that you are better than the others, different, innovative. In Croatia too we have good examples of that type of financing but there are too few of them. Our objective and the objective of this seminar is to attract as much global capital as possible to achieve your business ideas,” said Domagoj Dan Maček of HGK’s Department for attracting investments.
Oaza's CEO Tony Porcheron, spoke about trends on the global financial market. “Banks will give you money when you virtually do not need it anymore, that is why in the companies in the world usually seek finances through bonds because of their numerous advantages. In Croatia, only the state issues bonds and the market is generally very conservative because people consider that when a business goes bankrupt that is the end of the world and not a constituent part of doing business. Abroad the Three P’s are the most important (people, process, product), in other words if an investor isn’t impressed with your staff, way of operating and product, they won’t do business with you regardless of finances. We never push a company into something they do not want, but help management to determine for themselves how they want to develop”, Porcheron said and explained the process in preparing investors to issue bonds and different principles of alternative financing (SPAC, LBO, REIT).
To view Tony's presentation click here.
Source and photo credit: HGK