EQUITY CAPITAL NETWORK
With its wide connections, DCM has over the years established a reliable network of investors. The network is built through business contacts and successful ventures. There are many types of investors, including institutional investors, individual or angel investors, venture capital firms and private equity groups. New investors are periodically added to the network, but not without considerable scrutiny, thought and analysis.
In general, companies that qualify for consideration by the equity capital market must:
1) be a reasonable size operation in the industry.
2) have a strong management team.
3) have a proven track record of growth and potential to continue.
4) have the ability to generate revenues.
Therefore, DCM would need to investigate typically potential customers for information and documentation about their company. These include biographies and CVs of the management members, business plans and financial statements. DCM will then evaluate and analyze the information to propose the best solution for the Clients.
Finder fees would depend on the amount of capital received by the clients and the amount of work involved. In general, the fees are based on a percentage of the funding raised, ranging from 5 to 10 percent of the amount of the equity capital, with the higher percentage for smaller amounts. The fee structure is flexible but part of it would normally be delivered before the commencement of the services.