Searching for a Financial Partner

Debt, Equity, Trade or M&A Finance, finding the right partner can be a herculean task

From identifying synergies to finding groups that specialize in your industry, it is no easy feat. The traditional methods of connecting with Financial Institutions are not always the most efficient, and in a world where every dollar and minute count, you want to make sure you finding Capital the smart way.


The first step is understanding what kind of Corporate Investment type you're looking for : Debt or Equity? Who has access to what? What types of deals do each firm typically close? Who has their ear on the ground at any given time? The list goes on...


Let's start with Debt vs Equity: A Company typically looks to sell a piece of itself to raise money. There are two main ways it can do this: Debt or Equity.


Debt is borrowed from a Financial Institution that has been granted security over the Company's assets in case the borrower defaults on its payment(s).


This type of Investment typically carries interest and must be paid back at specific time periods with set interest rates (commonly known as Loans).


Equity, on the other hand, is not paid back and gives the Investor a stake in the business. If we were to compare Managing Directors at these respective groups; those who lead Debt teams generally look for synergies between Companies they lend to, whereas those leading equity teams usually invest into Companies that help their current Corporate Clients (and indirectly boost revenue for their firm).


These are 2 very broad differences between these two types of Investment. There are numerous sub-types within each category, but to make sure you're getting your search started in the right place, here is a general guideline on how to proceed:


1) What type of Industry does my Company work in? If it's more technology (i.e., SaaS), lean towards equity funds (less risk since they tend to invest into more than 1 Company); if it's more B2B or Manufacturing oriented, then debt funds may be better suited.


2) Who do I already know that has invested into Companies like mine previously? Ask colleagues or even your CFO for referrals; sometimes networking can pay off.


3) Which Financial Institution specializes in my type of Industry? This is where having connections helps...ask your Corporate Banker if they know which debt funds are investing into businesses like yours. Even Personal Investors or Family Offices may have information on this, so don't be afraid to ask around.


4) Who has the most experience closing deals within my industry? Again, networking can help here (or even a simple Google search). Think about the other companies you work with and see who their Investment Funders are; odds are there will be some overlap between Groups, especially when it comes to Debt Funds.


5) Does one group specialize in more than 1 industry vertical? Are they more well-rounded and therefore could make more informed decisions on your deal? If you get the sense that they could add more value than another group, then it may be worth looking into further.


Now that we've gone over the basics of Debt vs Equity and what to look for in a Financial Partner , we'll look at how a Njord.ai Membership can accelerate the search and accuracy in finding the right source of Capital.

Njord.ai is a platform that connects companies looking for capital with Financial Institutions looking to provide it. Njord uses Artificial Intelligence and smart predictive technologies to help you find the best possible match while saving you time and effort in the process.


Njord's AI analyzes all available data on any given company so that both sides of the deal have an accurate understanding of what they're getting into before making an introduction.


This saves companies from having to spend weeks manually searching through databases of Financial Institutions, additionally saving them money on research fees. It also helps Financial Partner firms find highly qualified companies to work with, so they can submit better deals and maximize their return on Investment.


Finally, Njord's smart networking technology not only matches you with the strong Financial Partners for your Company but also connects you with someone at that Group who is actively looking for opportunities - cutting out all the noise.


Thanks to Njord's intelligence algorithims, you can spend less time worrying about the investmen t process and more time building your business. And with accurate data provided by AI, both sides are better prepared for a successful partnership at every stage of the deal.


Learn More about Njord.ai

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