A P O W E R F U L E A R LY -S TA G E I N V E S T M E N T S T R AT E G Y
A new approach to finance is required during the current economic disruption and
as the global economies begin to recover. Providing direct loans to qualified
businesses in the form of a convertible note allows qualified companies quick
access for proof-of-concept financing and the ability to lower the due diligence
time and costs and protect founders’ equity positions.
Leveraging a disciplined investment strategy, deep industry relationships and
operational experience, investors can achieve returns significantly in excess of the
traditional equity markets.
There are three major benefits to becoming a creditor to early stage companies:
Liquidity, Equity and Control.
FuseFinancial offers advisory services to startups and mid-market companies.
Financial advisory services include capital raising, due diligence planning and
business development to Technology and Energy sector companies. Fuse currently
offers both strategic and tactical guidance to companies in these sectors and
represents them to established institutional investors.
Fuse management believes that many NewCo’s would benefit
from financing in the form of a loan structured as a convertible
note while positioning for a successful equity investment.
Lenders should focus on the underlying economics, an adherence
to rigorous due diligence, the ability to accelerate an equity
investment. In addition, building operational management post
debt financing will enable the creditor the option of an exit since a
smooth running company with a plan and a track record will
attract an equity investment in the near term.
An investor needs to take an active role in the management of the
investment, in order to reduce risk and increase returns. Initial
transactional structure, proprietary research and strategic thinking
will be critical differentiators in the performance of this strategy.
The current market conditions are