Capital Raising Details

Process | Fee Structure | Engagement Steps | FAQ

Our Process

Whether a formal securities offering or a negotiated transaction with a specific capital source, Serica’s formula for raising capital enables you to effectively identify, engage and close the investment you need to thrive.

Capital Raising

  • 1

    INITIAL ANALYSIS
    Assess your company’s current capital structure, future capital needs, and how Chinese investment can help you achieve your global ambitions.

  • 2

    STRATEGY & PLANNING
    Develop a comprehensive strategy for your capital needs, IP considerations, covering ideal targets, expected timeframes, and engagement tactics.

     

  • 3

    DEVELOP ASSETS
    Create Chinese marketing assets, such as pitch decks and whitepapers, that enable you to confidently pitch a compelling commercial opportunity to local investors.

  • 4

    SHORTLIST, ENGAGE & QUALIFY
    Develop a list of suitable investors and local partners, engage in preliminary meetings on your behalf to qualify them further, and then create a shortlist for you to choose from.

  • 5

    WIN GOVERNMENT SUPPORT
    Guide you through the process to win generous economic incentives such as grants, subsidies, accelerated regulatory approval, and free commercial space.

  • 6

    NEGOTIATE TERM SHEETS
    Working under the pre-agreed investment strategy, we will help negotiate terms sheets and work with your legal counsel to close out the investment effectively.

  • 7

    MONITORING & GOVERNANCE
    Take a role of governance; monitoring performance, providing strategic oversight, and helping manage investor relations.

  • 8

    CONSOLIDATE & GROW
    Capitalize on our expertise and extensive global network to significantly accelerate your growth in the short and long term.

Fee Structure

Combining a monthly retainer with a scaled percentage success fee (based on the estimated transaction value) our fee structure is designed to tightly align both our interests towards maximizing the value and success rate of the transaction. Under certain conditions (and applicable laws), we can reduce our fees by a maximum of 50% in exchange for a compelling equity in the venture.

Estimated Transaction
Value (ETV)

Monthly
Retainer

Success
Fee

<$10m $10k 5-8%
$10-20m $10-20k 3-5%
$20-50m $20-30k 2-3%
$50-150m $20-30k 1-2%
>$150m >$30k <1%

Our total fees are capped at 10% of the final transaction value (FTV). Retainers accumulated will be deducted from the success fee of all projects with a final transaction value (FTV) of over $10m. 

Serica does not, under any circumstances, work on a sweat equity or success fee only basis.

Engagement Steps

Our engagement process is designed to be highly collaborative to ensure that we find the best solution for your company as efficiently and effectively as possible.

  1. Receive an initial consultation for free to discuss your goals for the Chinese market and how Serica’s solutions can help you achieve them.
  2. Sign a ‘Mutual Non-Disclosure Agreement’ to protect everyone’s interests. For mutual convenience and security, we send the agreement electronically (via DocuSign) for e-signature.
  3. We outline the basic details of our prescribed solution – covering the key opportunities, time-frames, and value created as well as the estimated project fees (calculated based on the variables above) for your consideration. Where needed, we can prepare a simple presentation with all of the above details to enable smoother internal discussions and decision-making.
  4. Once you have discussed it internally and arrived at a consensus on the broad solution, we will have a follow-up meeting to give you the opportunity to ask any questions and request changes to the scope.
  5. Building upon what was discussed and agreed upon in the previous meeting, we collaborate to develop an ‘Initial Proposal’ covering the precise scope, deliverables, milestones, and operation details.
  6. We conduct a ‘Proposal Review Meeting’ where we both have the opportunity to discuss and further refine the project’s scope, deliverables, and operational details.
  7. Based on discussions in the previous meeting, additional details are added to the proposal, alongside ‘Terms & Conditions,’ transforming the proposal into a legal contract – which will be sent electronically (via DocuSign) for e-signature.
  8. We begin working together to achieve your commercial goals and international ambitions.

Frequently Asked Questions

1. What is the average length of a Capital Raising project?

Between 3 to 9 months, depending on the scope and scale of the project.

2. What are your primary capital sources?

Angel investors, venture capital firms, corporate venture funds, private equity funds, family offices, and asset-based lenders in China and the United States.

3. Do you cap your total fees?
Yes. Our total fees are capped at 10% of the final transaction value (FTV).

4. Are retainers incurred offset against the success fee?
Yes. Retainers will be deducted from the success fee provided that the final transaction fee is over $10m.

5. How does the scaled percentage model work?
Before signing the contract, we will have preliminary discussions to agree on an estimated transaction value (ETV), on which our success fees will be based. For example, an ETV of $5M would have a success fee of 5%, and if amount of capital raised matches the ETV, the total commission would be $250k. But if the amount raised is is $5.5M (10% increase on ETV), then an additional 5% commission on the extra $500k would be applied to bring the total success fee to $275k.

6. Do you have any break fees?
Yes, we typically include break fees of between 1-2% for the rejection of any ‘bonafide offer’ you receive.

7. Can you reduce the professional fees in exchange for equity in our company?
Depending on your company’s fundamentals, corporate structure, and headquarters location, we can reduce our professional fees by a maximum of 50% for meaningful equity. Note, we only accept Ordinary or Preferred Shares in your parent company (not your subsidiary) that are transferred in full without any vesting periods.

8. We are a startup that cannot afford your professional fees. Can you still help us?

Yes. Our unique Accelerator Program is designed for innovative early-stage and growth-stage startups.

9. Can you engage and negotiate with prospective investors we have already qualified?
Yes, however, we would insist on conducting basic due diligence before engaging with any of them directly. Additionally, best practice dictates that we source additional prospective investors after the research and strategy phase is complete to maximize the value and success rate of any investment we facilitate for you.

10. We are concerned that government authorities may block the transaction. Can you mitigate the risk of this happening?
Yes. 1) We do not work on projects with ‘clear and direct’ dual-use technologies or any overtly politicized sectors, the sectors we work in are not typically subject to restrictive laws or regulations. 2) Regardless, we proactively coordinate with different government departments directly in advance of any transaction – such as the Chinese Ministry of Commerce, the US International Trade Administration, and the UK Department of International Trade – to stay apprised of changes in the regulatory landscape and, where barriers are applicable, gain practical support to overcome them.

11. Are expenses covered?
No. However, the contract we sign states that all expenses must be pre-agreed in advance and that receipts must be provided before any reimbursement is paid.

12. Are there any third-party fees we will incur?
Yes. At a minimum, there will be legal, banking, and government fees that you will incur. Serica will endeavor, through its network of strategic partners, to keep these costs to a minimum.

13. What are your billing cycles?

Our retainers are billed quarterly, with the first payment due within ten (10) business days of the contract being signed.
Our success fees are paid in full within ten (10) business days of closing.

14. What currencies do you accept?
USD, GBP, EUR, SGD and CNY.

15. What jurisdictions apply to Serica contracts?
Our default jurisdiction is Singapore due to its advanced legal system and efficient (and cost-effective) dispute resolution. We can accept other well-regarded Common Law jurisdictions such as the United States and the United Kingdom as alternative jurisdictions.

16. Can we sign a Non-Disclosure Agreement before our consultation?

Yes, as long as it is a Mutual Non-Disclosure Agreement with Singapore, United States, Canada, or the United Kingdom as the jurisdiction and signed electronically. Serica has an excellent MNDA that you can review here.

17. Why do you exclusively use digital contracts, proposals, and invoices?

The ability to receive, sign, and pay electronically provides both of us with enhanced security and greater convenience. Learn more.

18. Can you help organize visas, travel arrangements, and source interpreters?
Yes. We can sponsor your visa, help you find hotels, and connect you with reliable (and cost-effective) interpreters.

19. How do you track and report project progress?
We provide you with direct access to our project management software that enables you to track and review our progress in real-time.

20. What else do you need from us?
Serica takes a highly collaborative approach to every project we undertake. Throughout the project, we expect and need you to dedicate the time, focus, and resources towards achieving the goals we set together.

Book a free consultation

Please fill in the form below and we will contact you within a maximum of five working days.