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ExCapsa Enhances Fundraising Process Through a Multi-Practice Approach

Launching a venture and introducing a new innovation to the public are steadfast aspects of the American Dream, and two life goals that many aspire to achieve. The desire to bring new companies to life has been further compounded by the success of startups over the course of the last decade. But for every Snapchat and Airbnb, there are thousands other companies who tried but could not make a lasting impression on the market. In fact, as many as 90% of all startups fail, and many more become zombies that never grow. Although startup failures can be attributed to a number of factors, including slow product development, lukewarm audience reaction, or a competitor’s success; too often, early stage companies crash and burn due to lack of financial means and guidance. 29% of failed startups cite cash-flow problems as the primary perpetrator behind their downfalls. To ensure that tomorrow’s innovators are not sidelined due to financial restraints and poor risk management, the ExCapsa team is dedicated to supporting high-potential early-stage companies through direct investments and ongoing investment advisory.

What separates ExCapsa from the rest of the financial services world is our hybrid collaborative approach. We bring the expertise of taking companies public to early stage startups striving for unicorn status.  We know that launching and running a business is not a black or white process, and neither is fundraising. But for too long, fundraising services were siloed, forcing entrepreneurs to seek multiple resources and areas of counsel to meet operational goals. It was a broken system. Startup founders are already forced to wear multiple hats: product and service development, head of HR, CMO, chief of employee happiness, etc. ExCapsa’s goal is to simplify, streamline, and de-risk the fundraising process.

As an exceedingly discerning company, we take the client selection process very seriously because we know that not every young company is ready for the challenges of pitching and working with investors. Our selectivity stems from our experience in guiding companies through exit strategies, and devising comprehensive asset management plans to help tiny startups grow into massive, public companies. When entrepreneurs face financial challenges at every turn in the lifecycles of their businesses, it stalls innovation. With ExCapsa, budding ventures find seamless support under three distinct practice areas: Direct Investment, Capital Advisory, and Insurance.

Direct Investing

A universal, albeit sometimes unfortunate, aspect of entrepreneurship is that no company can successfully launch without some degree of financial investment. To make money, businesses must spend money, and to spend money…well, businesses first must have money. But amassing enough funds to meet the demands of launching a business is no easy feat. Contrary to the way in which Silicon Valley startups are mythologized, VC’s and independent investors are not just throwing money at every hopeful business leader who knocks on their doors.

Although we take an industry-agnostic approach, we favor companies introducing new technologies and business models. We rely on a balanced combination of market trends and instinct honed through years of experience. Among the list of recent clients on our roster are venture disrupting artificial intelligence, virtual reality, ecommerce, education, and globalization.

Here at ExCapsa, we pride ourselves on our ability to discern which ventures are ready for funding, and which need more time to develop and prove their market value. We lead with open minds; in this day and age, we know that innovation can strike anywhere. However, we also know that a company’s potential value transcends an initial idea; anyone can idea an interesting product or solution, but not everyone can execute and successfully bring ideas to fruition. We don’t invest in ideas; we invest in people – people who can deliver on growth and profitability targets. When we meet with hopeful entrepreneurs looking for financing options for their businesses, we don’t just listen for market figures and growth models. Rather, we seek to work with individuals and team leaders who understand that running a business takes more than data, that human capital is far more valuable cash. The entrepreneurs we work with demonstrate an innate appreciation for talent acquisition, growth, and collaboration. No entrepreneur, regardless of successful background, can expect to find success on his or her own. It takes a village to build a successful company, and here at ExCapsa we’re committed to working with startups that demonstrate a respect for team and community building.

Investment Advisory/Investment Banking

ExCapsa is not a one-stop shop. In addition to investing directly in companies, we also specialize in Investment Advisory. The ExCapsa team brings over 20 years of experience and offers every client a wealth of industry insight gleaned from decades of experience. Both publicly traded and privately held companies throughout all stages of the growth cycle – seed, angel, venture capital – rely on our sharp acuity and breadth of industry knowledge to take their ventures to the next level.  By leveraging our relationship with our Broker dealer and network, we’ve built credibility with our vast network of investors who feel confident supporting our vetted growing ventures knowing we provide the tools and guidance to help them successfully grow their companies to scale.

As industry experts, it is our responsibility to create dynamic fiscal models and solutions to prepare young companies for every possible challenge and market outcome. For example, a new-to-market company may receive enough investor-backed funds for product development. But what happens when those funds run out and they’re tasked with the responsibility of marketing and selling to a new customer base without any capital to spare? In short, they turn to ExCapsa to find the right financial solution; our experienced team educates and advises on the possibilities of each outcome. Our expertise extends to every facet of financial acquisition and management, including:

  • Equity and Debt Financing
  • Private Placements
  • Recapitalizations
  • Debt Placement
  • Commercial Debt
  • Project Financing
  • Sale Leaseback Deals
  • Private Investment in Public Equity (PIPE)
  • IPO’s
  • Construction Financing
  • Real Estate Loans

As startup opportunities continue to attract entrepreneurs of all background and interests, it has become exceedingly difficult to command the attention of investors. Independent angel investors and VCs have heard it all: every pitch for groundbreaking technology solutions and every assurance of the market’s need for a specific solution. Breaking through the noise is difficult, but that’s where the ExCapsa team comes in. Our team has sat on both sides of the table; we’ve pitched and been pitched to countless of times, and this depth of experience has taught us invaluable lessons on what it takes to share and successfully sell a budding brand story to skeptical investors.

We also know that our voices and opinions are the only ones that can help companies meet their growth goals. We offer advisory clients a network of over 120,000 potential investors, including private equity firms, high net worth individuals, venture capital firms, and micro VC’s. Our network is comprised of individuals and groups that we have come to know and respect throughout our years of providing financial guidance. It’s in no one’s best interest to funnel hopeful entrepreneurs to organizations that have very little time or interest in their product or vertical. Instead, the ExCapsa team carefully synthesizes each client’s unique attributes and market potential to find the right investor match.

But our advisory services don’t simply begin with a pitch and end with a phone call to an industry contact. Preparing a company for an investment opportunity is far more nuanced than that. Most first-time entrepreneurs have deep-seeded expertise within a particular field; it is this level of expertise that enables them to envision a more streamlined solution. But just because they are skilled developers, product marketers, and technologists, it does not mean that they are also equipped with sound operational insights, communication instincts, or presentation capabilities. ExCapsa steps in where a client’s experience might lack. Our team of strategists understands the challenges of transforming an idea into a marketable business and we offer comprehensive strategy consultation to educate new business leaders on how to navigate these transitions.

Just as it takes a village to see a startup venture through to success, it also takes a multi-faceted community to support emerging companies. ExCapsa offers advisory clients direct access to several corporate partners, including MASSPITCH and Verma Media. The MASSPITCH team helps new companies prepare for and secure investor interest. MASSPITCH is a team comprised of industry veterans with over 20 years of experience, angel investors, and CEO’s who have successfully secured funding for their own ventures. Together, the MASSPITCH team provides comprehensive pitch feedback on each facet of the pitch deck, including executive summary and revenue modeling. Additionally, MASSPITCH also offers a full suite of design services, including information hierarchy strategy and graphic design. Once a pitch deck has been approved, the MASSPITCH team leverages its vast investor network and facilitates a dynamic direct marketing campaign targeting investors most likely to be interested in a specific pitch. With the support of MASSPITCH, founders can focus their attention on preparing their companies for the next growth stage, and leave the graphic design to industry experts who understand the style and information hierarchy investors seek.

Additionally, ExCapsa also understands that simply expounding on the future potential of a company and designing a sleek presentation is not enough to win investors over. Investors want to see traction and engagement; they need to know that there is an actual consumer need for the development of this product or service. Companies of all sizes and across all verticals rely on content marketing initiatives to grow awareness and forge deeper connections with target consumers. Verma Media, an ExCapsa partner, is a full-service content marketing firm that takes a venture’s story and creates full-fledged content series around the company’s unique value proposition.

ExCapsa leverages its partnership with LeadCrunch, a predictive B2B lead-gen platform, to help companies streamline the prospecting process to generate sales immediately. LeadCrunch’s proprietary technology analyzes prospects’ digital identities to identify and serve clients with the right contacts and information to commence outreach.

Insurance Brokerage

People are at the center of every decision we make at ExCapsa. We invest time and money into people who are in the business of creating solutions for other people. As we watched our clients secure funding and advance their companies, we realized that there was still a missing piece of the puzzle. We prepared growing ventures to meet the demands of fundraising and investor pitch meetings, but what about what comes after those meetings, when the funds have been distributed and entrepreneurs are tasked with proving their value? In addition to facing the ongoing challenges of developing and marketing technology and solutions, the leaders of these companies are also tasked with the added burden of creating and managing company plans to support employees and protect themselves from liabilities. These fine-print steps are the least exciting aspects of launching or running a business, but they’re also the most important. Too often startup founders fear extra costs associated with insurance and don’t want to deal with the pains of reaching out to multiple providers.

From life insurance plans to employee benefits and payroll solutions, we saw founders across all verticals and growth stages floundering as they grappled with the nonstop demands of meeting basic employee needs. Rather than watching these ventures fold under the pressure from afar, we created a comprehensive solution to answer these challenges.

ExCapsa Insurance Brokerage was founded and built with both the investor and start-up entrepreneur in mind. Just like with our direct investing and capital advisory business, we take a collaborative approach that allows for us access to the very best in class carriers, resources, and financial tools. We have access to every mission critical insurance strategies needed to make our clients successful through our extensive list of partnerships, including:  Lakeview Financial, Insmark, The Buckley Group, Alpha Staff, Gusto, and Hub International.

It takes an incredible amount of energy to drive business growth while meeting the demands of employees. Most business leaders don’t have the time or resources available to manage the insurance needs of a business and employee benefits programs. Furthermore, many growing businesses may not be able to budget the capital necessary to outsource these initiatives. That’s where ExCapsa’s Insurance Brokerage platform steps in. Utilizing the platform enables business leaders to manage all human resources needs within one, streamlined location. For example, a Split Dollar plan could be the differentiator in attracting key recruit looking for comprehensive life insurance. In this instance, the platform would manage the Split Dollar arrangement, and enable the founder to find the most cost-effective coverage to suit both parties’ needs.

Another insurance package that can be difficult and time-consuming for business leaders to take on without an insurance agent’s guidance is key person coverage. ExCapsa’s Insurance Brokerage platform facilitates the purchasing of the package and serves as a centralized database in which all documents and communications on the plan live. Other essential insurance needs covered by the platform include:  Non-qualified deferred comp for supplemental retirement income, business Succession planning ensuring continuity of operations in the event of death, or a cash source to fund a buyout of older owners.

More key features of the Insurance Brokerage platform include:

  • Life Insurance
  • Disability Insurance
  • Long Term Care Insurance
  • Employee Benefits
  • 401K
  • Deferred Compensation
  • Payroll Services
  • Investor Insurance
  • Life Settlement purchasing & brokering
  • Wealth management services (available to all employees under every client contract)
  • Key Person Insurance
  • Errors & Omissions Insurance; +General Liability

As any entrepreneur or owner can attest, when it comes to starting and growing a company from the ground-up, the cycle of challenges is never ending. It is our mission at ExCapsa to build a connected community to support every endeavor facing today’s hopeful entrepreneurs. Too many promising innovators have withdrawn from the race due to lack of support or collaborative management. Launching a startup to market success is often the result of the perfect storm: timing, market readiness, product innovation, funding, and people. In reality, the driving innovation behind the birth of any company is subject to change; technology advances, consumers’ behaviors shift, and even the best ideas get passed over for something newer. But when we invest in people, and educate them on how to manage their finances, communicate their stories, build strong, collaborative teams, and we give young companies the chance to survive the downfalls of rapid technology and market advancement. People are the foundation of every great company success story, and it is our mission to help the people behind the dreams amass the tools and resources necessary to achieve success.