Frequently Asked Questions

General

Arcor Capital specializes in raising growth capital for early stage and mid-market enterprises in Asia from an exclusive network of institutional investors and family offices.

Led by a team of highly experienced financing professionals, we provide debt and equity capital solutions for our clients through a streamlined transaction process.

We combine traditional investment banking best practices with innovations in financial technology to create a transparent and efficient platform for highly curated opportunities.

Our clients primarily consist of private companies, including but not limited to early stage technology-related companies with high-growth potential and middle market enterprises seeing growth capital.

  1. Early stage growth companies – these companies will typically be technology companies that are looking to expand rapidly and require third party financing to fund their growth plans. They are likely to be too early stage for traditional bank loan financing with limited near term cashflows and require a structured debt or private equity financing solution. We can assist these companies with raising early stage financing from family offices, strategic investors, high net worth investors and venture capital investors.
  2. Established SMEs ("mid-market") – target clients will be companies which are unable to access further traditional financing such as senior bank debt and require funding to finance growth, working capital or refinancing. We can assist these companies to raise financing though mezzanine or private equity structures.

Our investors fall into several key categories:

  1. Institutions – these include private equity and venture capital funds, hedge funds, specialist credit funds and bank proprietary investing desks. These investors will typically be the target for mid-market opportunities with the exception of venture capital funds which will be the target for early stage opportunities.
  2. Family and Multi-Family Offices – these investors manage money and make investments on behalf of ultra-high net worth individuals. Investment criteria varies from investor to investor and these investors may be able to participate in mid-market and/or early stage opportunities.
  3. Accredited high-net-worth individuals – these investors typically look for early stage opportunities although sector and size requirements can vary.

Please contact our support team at enquiry@arcorcapital.com or use our contact form.

About Fund Raising

We conduct a review of the business and investment opportunity to determine suitability for the Arcor Capital platform based on a number of factors including, but not limited to, the type of business, stage of growth, financing requirments and use of proceeds, proposed financing terms and structure. Approval is determined by Arcor Capital's investment committee.

Our fees are competitive and success based to align our incentives with those of the capital seekers and determined based on the type of financing being raised. Please contact our support team at enquiry@arcorcapital.com for more details.

Transaction process typically takes 6-8 weeks including 2-3 weeks for diligence and preparation of materials, 2-3 weeks for marketing and 2-3 weeks for documentation and closing.

Marketing materials will typically consist of a company presentation or information memorandum and financing terms. Transaction documentation prepared by counsel once terms have been agreed include a subscription agreement and may include other documents including security documents, intercreditor agreements depending on the type of transaction. Investors may also require other legal and business documentation to be provided for diligence purposes.

Companies are responsible for engaging their own legal counsel to assist with the preparation of all relevant legal documents (such as subscription/ purchase agreement, etc.). This will typically occur once investors have agreed to financing terms. We are happy to recommend legal counsel if required.

Once investor(s) have committed to the financing, funds will either be transferred directly to the Company or our appointed escrow agent will facilitate the transfer of funds. For licensing purposes, Arcor Capital does not hold investor funds.

About Investing

You first need to register and confirm your accreditation status to view opportunities.

Our focus is on the junior spectrum of the capital structure for investors who target higher returns. As such, we focus on common and preferred equity and mezzanine or convertible debt structures.

Early Stage companies will typically raise funds via preferred equity or convertible debt structures. Preferred equity ranks senior only to common equity and may have priority over common stock upon liquidation or in respect to dividends. Convertible debt may be a loan or note which converts to common/preferred equity upon certain milestones being achieved at a valuation to be determined by a future fund raising or liquidity event.

SME structures may also employ non-traditional financing tools including mezzanine and private debt or equity structures that provide companies with funding flexibility while providing investors an enhanced return on capital or an opportunity to participate in future upside.

Typically 4-6 weeks including 2-3 weeks for marketing and 2-3 weeks for documentation and closing.

You may propose a size below the minimum but acceptance will be subject to the capital seeker's discretion and priority will typically be given to investors who have commitments above the minimum investment size.

Instructions will be given for investors to transfer funds directly to the capital seeker's bank account or in certain circumstances to our appointed escrow agent who will hold investor funds independently of Arcor Capital until closing when funds are transferred to the capital seeker's account.

Once the subscription agreement has been signed a commitment cannot be withdrawn.

Arcor Capital may charge an access and facilitation fee on a case by case basis depending on the type of transaction.

The transaction process consists of three stages:

Stage 1:

  • Registered investors are able to view summary information of opportunities listed on the platform.
  • Any registered investor who are interested in receiving more detailed information may request to proceed to Stage 2.

Stage 2:

  • Investors who request additional information will be reviewed by Arcor Capital and the Issuer and investors who are accepted will be granted access to additional information to evaluate the opportunity.
  • Investors can submit an initial non-binding indication of interest to be considered for Stage 3.

Stage 3:

  • Shortlisted investors will be granted access to a detailed due diligence information and after review of the information will be expected to submit a binding commitment.
  • Arcor Capital aims to provide investors with transparency and access to all transactions on our platform but we reserve the right to determine which transactions investors are able to view and we retain full discretion to determine which investors are shortlisted at each stage of the process.

Allocations will be on a pro-rata basis where possible. Final allocations remain at the discretion of Arcor Capital and the Issuer.