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Expansion Capital for a Design-Focus Web-Based Flash Sales Company to Further its Platform

Expansion Capital for a Design-Focus Web-Based Flash Sales Company to Further its Platform

Situation:

The company managed a flash sale website that serves as a platform to market and sell great design products to customers. Sales events are only open to invited members and membership is obtained through invitation from a member friend or direct from the site. Sales events are announced via email a week in advance and last 36 hours or until all items are sold out, whichever comes first. They came to CAPITAL with a request to assist in raising expansion capital to further develop this platform.

Challenge:

The company is a startup will a small revenue, the business model needs a lot of fine-tuning including its revenue model, profit margin model, operating model, working capital model as well as the financing model before it can really attracts serious investors.

Solution:

Working with the co-Founders, CAPITAL developed the business model, assisted in the creation of the presentation to potential investors, designed the financial terms of the offering and participated in investor pitching and, ultimately, worked closely with management in closing the transaction. CAPITAL continued working with the Board and potential investors in negotiating terms.

Results:

This client successfully raised RM500,000 from an angel investor in 6 months plus RM500,000 commited capital, which enabled the company to further develop its product, fund key marketing initiatives, and position themselves for the next wave of growth and strategic partnering opportunities.

Capital Team