Capital Markets

Investment Readiness Services

Companies with great potential almost always need an infusion of capital to accelerate momentum. Unfortunately, the process of getting ready for a capital raise can be both arduous and challenging and can distract management from focusing on core business.

In order to get the process moving quickly and smoothly, it is vital to clearly and convincingly demonstrate the investment thesis to investors.

Convergence uses a methodical approach to get clients investor ready.  Armed with the right pitch, documentation and mindset, the likelihood of attracting the right investors increases dramatically.

Financial Modelling:

Getting investor-ready starts with knowing your core business and converting that knowledge into numbers that make what you’re doing come alive in the investor’s eye. But financial models built without insight will either be torn apart by potential investors or worse, ignored completely.

Any business supported by a weak model that doesn’t match investor expectations is unlikely to raise sufficient raise capital.

Convergence builds models that mechanically distill the essence of the investment opportunity into core assumptions and focus on the key cause and effect relationships.

A robust financial model built this way also provides a clearly defined set of targets that company management, directors and investors can all refer to as the business grows.

Information Memorandum Writing:

The Information Memorandum (IM) is a disclosure document for private market companies. The document is designed to give investors a full and accurate, yet attractive overview of a company.  It includes comprehensive information about the company such as its history, products and services, market positioning, operating model, business scalability and key individuals.

A well written IM can make or break the capital raising process. It’s essential to demonstrate an all-round knowledge of the business opportunity to investors and the IM is one of the best ways to do that.

Pitch Deck Writing:

The first document an investor will tend to look at is the pitch deck. Good ones follow a clear structure that tackles standard questions that investors want to be answered. After reading it, the investor should have a good understanding of the over-arching investment thesis of the opportunity. It tends to flow out of a well-written investment memorandum and requires an excellent understanding of the internal dynamics of the business and the industry it competes in.

Every CEO understands they need to sell their core product to consumers.  What is less well understood is that attracting capital is the same as ‘selling’ shares in the company.  You understand what it takes to sell your product to customers, and that same level of diligence is required to sell shares to investors.

If properly structured, the IM forms part of a consistent message that sells your business to investors, not by telling them what you think they want to hear, but by showing them you know what you are doing in a language they understand.

Valuation Discovery:

For many private companies, capital raising becomes a focal point for the topic of valuation. Moreover, valuing some companies (such as early-stage tech) is fraught with difficulties as these companies are often pre-profit flow. It is essential, however, to get this part of the process right. It is a balance between not giving away too much of the company and being realistic about what valuation your company can fetch from hard-nosed investors. Far too often, promising companies fail to raise capital from because the initial expectations of founders and investors are too far apart.

Covergence believes that this is a crucial step to get right when building a successful business and to raise efficiently in follow-on rounds.


Capital Raising Process

There are two advantages to being very investor ready.  First, the documentation addresses all the questions that might come up during the roadshow. As a result, the CEO is not blindsided by a question that delays the process.

The other advantage is that the CEO of a private company can approach the whole market (venture capital firm, angel investors and family offices) at the same time. This creates crucial price tension.

Convergence Capital Australia maintains relationships with the growing number of ESVCLP’s in Australia as well as angel groups, family offices and venture capital firms globally. Due to the partners’ long involvement with financial markets, Convergence is also able to leverage its broker network to source funds.

IPO Readiness

Private market businesses with proven revenue streams often look to public markets as either a way to pass a business on to the next generation of owners, or to bring in new capital to scale up operations.   Businesses with valuations over $15m can consider accessing equity capital markets via an Initial Public Offering (IPO) on the ASX.

Regardless of the reason, business owners and their management need to follow a familiar path of attracting capital from individual investors as well as from institutional investors such as small-cap fund managers.

One of the biggest differences we see between public and private companies is the additional care that needs to be taken with any messaging and forecasts produced by a listed company.

The mechanical methodology that Convergance uses to understand any investment fits perfectly with the more demanding needs of equity capital markets.  Convergence Capital Australia can help owners and management understand the expectations of equity underwriters and institutional investors.


Industria believes that this is a crucial step to get right when building a successful business and to raise efficiently in follow-on rounds.