Capital raising
Equity, debt, and convertible structures
An instrument chosen around dilution, control, cash flow, and stage.
What it is
The instrument determines how capital interacts with dilution, control, cash flow, and the company’s stage. The options can include equity, preferred structures, debt, and convertible instruments such as SAFEs and notes.
There is no universally right instrument. The appropriate structure depends on the company’s facts, the purpose of the capital, and what the market and investors will consider.
Where it fits
- An early-stage company considering a SAFE or note
- A growth company weighing equity against debt
- A raise where control and dilution need careful thought
- A company with cash flow that may support debt
- A financing that may use preferred equity
What shapes it
- The company’s stage, financials, and cash flow
- Amount and purpose of the capital
- Dilution, control, repayment, and conversion considerations
- Investor appetite and the applicable legal and tax advice
How we approach it
We work with the company, its attorneys, and CPA firms to compare the instruments against the company’s actual position and objective. Confidentiality is maintained while the trade-offs are made clear.
Stapleton Frost arranges and advises on capital raising; it does not provide the capital directly. The structure follows the company’s facts rather than a preferred product or template. Outcomes and terms depend on the company, the market, and the investor, and we do not promise a raise or a specific outcome.
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A useful first conversation
Start with the outcome.