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Best options to raise capital for a company?


I have this question from a college question paper.

If a company wants $200 million to increase the size of the company, what is the realistic options that the company can opt for?

It depends.

If you have an incredible business plan and it looks like this business could be the next Google, you could raise $200 million dollars. There are a lot of venture capital firms out there that have money to invest.

To raise this amount of money the business would have to be just incredible. It would have to be in a fast growing industry. Also, the profit margins would have to be very good.

The company could either sell bonds, issue stock, take out a bank loan or sell junk bonds. Also, the company could ask venture capital firms to invest.

Good luck.

To go public with stock offers or IPO

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