PRIVATE CAPITAL HAS BEEN ACCUMULATING IN ANTICIPATION OF VALUE
The private capital market is still resilient in these volatile times, having raised significant “dry powder” previously.
Private investors are actively seeking quality assets.
FUNDRAISE DIGITALLY FOR EFFICIENCY
Our online digital platform reduces the need for face-to-face meetings with investors, enabling efficient fundraising during these restrictive times.
Our matching algorithm works around the clock to intelligently match companies with the right investors – uninterrupted matching means no downtime and streamlined information to your fundraising efforts.
FLEXIBILITY IN THE PRIVATE MARKETS TO WIN FINANCING
The private markets offer flexibility that fits your capital needs – CapBridge works with companies to structure the most optimal capital raising approach to optimise success.
Convertible debt financing is one tried and tested investment structure that effectively addresses immediate capital needs, whilst retaining various option to the company.
CONVERTIBLE BONDS/ NOTES
REDUCED BORROWING COSTS
Compared to unsecured loans, convertible bonds typically confer lower borrowing costs than regular loans as the bond includes rights to allow repayment of the loan with equity interests in some cases (instead of actual cash) and at lower interest rates.
RISK ADJUSTED OFFERING
The typical duration of convertible bonds for a company is approximately 1 to 3 years (to conversion /repayment). The company can set applicable discount rates, valuation caps, milestone events and conversion rights to manage the risk and reliability of its investor’s investment and founder’s dilution.
BETTER INVESTOR PERCEPTION
Investors and companies are not forced to negotiate and determine a valuation for the company at the point of investment, which is typically a time-consuming, expensive and difficult process in a traditional equity fundraise setting.
Typically, investors would get initial investment plus any interest earned returned if investor does not convert prior to maturity. The interest can be equated to the dividend payout associated with certain stocks, but investors also get the benefit of price appreciation if that stock goes up in value.
HIGHER YIELD POTENTIAL
Potential to earn a higher return with these bonds compared to traditional corporate bonds since a convertible bond includes the option to be converted into stock, a rise in the stock price also increases the value of the convertible.
HOW DO CONVERTIBLE BONDS WORK?
Investors loan funds to a fundraising company in return for the issue of Convertible Bonds, which under the terms of the relevant convertible bond agreement, shall grant investors the right to subsequently acquire equity/ ownership in the company at the milestone event, in lieu of receiving a return on investment in the form of repayment of their loan amount plus accrued interest from the company.
CapBridge aims to reduce transactional costs and time taken to complete deal negotiation by providing standardized Convertible Bond documentation for the fundraising company’s reference.
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FUNDRAISE WITH US
INTEGRATED & EFFICIENT FUNDRAISING PROCESS
Our proprietary smart algorithm system enables companies to optimise resources within a single platform for efficiency.
GREATER ACCESS TO MORE GLOBAL INVESTORS
Expand funding network by gaining visibility with investors who operate in the same space and meet companies’ fund requirements.
Connect with investors and accelerate their due diligence process on our fully digitalised platform.
FLEXIBLE AND CUSTOMISED STRUCTURES
The flexibility of private markets enables customisable structures and allows companies to offer user-driven products.
REGULATED BY THE SINGAPORE GOVERNMENT
CapBridge has a Capital Markets Services Licence (CMSL) under the Monetary Authority of Singapore (MAS). The Singapore Exchange (SGX) is a strategic partner and shareholder.
Tech fee waived* for the first 3 months for all new issuers convertible bond sign up by Quarter 2 2020.
*Tech fee waived for the first 3 months from the effective date of the Fundraising Agreement (“FRA”) signed with CapBridge. Eligible for new issuers (i) who have never had a user account with CapBridge, (ii) which use convertible bonds to fundraise, and (iii) which sign a FRA with CapBridge by 30 June 2020. CapBridge reserves the right to change the terms at any time without prior notice to the issuer.