The Entrepreneur’s Guide to Raising Capital

Traditional capital markets place layers of middlemen and intermediaries between the entrepreneurs who want to raise capital to fund their business’s growth, and the investors who want to make smart money moves. The future of capital markets lies in stripping away those layers and enabling entrepreneurs to tap into that pool of investors directly – and vice versa.

It’s about making capital markets open to all – and making it easier for entrepreneurs to raise capital. “At Mesh we’re very serious about entrepreneurs, because we know they are noble creatures,” says Mesh Co-founder Andries Brink. “Entrepreneurship is where economic activity happens. It’s where growth happens, where innovation happens, and where jobs are created. In our experience, entrepreneurs are custodians of the capital structure of a society.

Why Entrepreneurs Need Mesh.trade to Raise Capital

Mesh provides the ideal platform for entrepreneurs, connecting them with a wide pool of investors who are actively looking for businesses with growth potential. “For entrepreneurs, this is your chance to showcase your vision to those who can fuel it with the resources you need,” says Mesh MD Connie Bloem. “Listing an equity or a debt instrument on Mesh puts your business in the spotlight. It’s not just about raising money; it’s about establishing credibility and gaining visibility in your industry. Being part of a trusted platform boosts investor confidence and opens doors to new opportunities.”

Unlike traditional capital raising methods, Mesh offers flexible options tailored to the needs of high-potential growth businesses. “Whether you’re looking to issue equity, debt, or a hybrid instrument, Mesh gives you the tools to craft a compelling investment proposition,” Bloem adds. “We are here to help you find your sweet spot in the market and we will innovate with you – we don’t just leave you to figure it out on your own.”

The Mesh team can:

• help you structure your asset;
• explain the regulatory requirements for an Offer to the Public vs. a Private Placement on our marketplace;
• share best practice for your investor pitch and Go To Market strategy; and
  give you full visibility and control over the lifecycle management of your asset, such as managing redemptions, calculating and executing on coupon or interest payments and settlement.

Mesh offers the tools, resources, expert guidance, and a community of like-minded entrepreneurs to support you every step of the way.

The Power of Communities in Capital Raising

A key aspect lies in Mesh’s understanding that entrepreneurs must be identified within their communities and supported by their networks. “Entrepreneurs – big or small – always operate within a context,” says Brink. “That context has to exist, because it cannot just be institutional investors who believe in what the entrepreneur is doing. A large part of the investor support must also come from within their community and their context.”

Mesh MD Connie Bloem agrees. She calls these contexts “communities of interest”. “We know that there are people in your network who support your business,” she says. “When we enable you to issue an asset and place that asset in front of investors, it’s most likely that the community that knows and supports your business will also want to invest in it and benefit from its growth.”

To that end, Mesh uses its Primary Marketplace to directly connect issuers to their community of investors, giving those investors the opportunity to provide the capital the business needs to generate sustainable growth. A virtuous cycle designed to support entrepreneurs, their loyal customers and the growth of our economy.

Simplifying Access to finance: The Mesh.trade Advantage

The relationship between entrepreneurs and investors is fairly simple. As Brink explains: “The entrepreneur says to the capital structure: ‘I’m standing in the gap. I will provide an important service to my community, and if you support me I will return the favour in the form of a return.’ The investor then makes a decision on that entrepreneur based on their business plan, their capability, their character and their competence. And the investor says to the entrepreneur: ‘I trust you, to the extent that I am willing to pay a certain price to invest in you, based on an agreed rate of return.’”

It’s a simple dynamic in theory, but in practice most entrepreneurs struggle to make it happen. Access to finance and to growth funding particularly remains one of the biggest challenges, both globally and in South Africa, this is specifically the case in the entrepreneurial space.

Bridging the Gap Between Entrepreneurs and Investors

By opening capital markets, Mesh makes raising capital more accessible to entrepreneurs – and makes investing in the future of entrepreneurial businesses more accessible to interested investors.

“Our ecosystem doesn’t only give you access to interesting private equity investments,” says Brink. “We also ensure that covenants are managed and promises are kept by those entrepreneurs. This we do through the innovative dynamic attributes that we load onto our instruments. Our platform ensures that the entrepreneurs who use Mesh to raise capital, keep on delivering what they promised to investors. This is very important because of the social aspect of entrepreneurship.”

Steps to Capital Raising Success

Raising capital on Mesh is an exhilarating process, but it’s also a serious commitment. “Success requires effort, diligence, and resilience,” says Bloem. “Investors expect clarity, confidence, and detailed information. You’ll need to craft a robust business plan, articulate your vision, and provide transparent financials. This preparation isn’t just for investors – it’s an opportunity for you to refine your business strategy.”

Going public on Mesh also involves adhering to legal and regulatory standards. This includes preparing legal documentation, understanding investor rights, and ensuring compliance with platform rules. While this might sound daunting, it’s an essential part of building a sustainable and trustworthy business.

“A successful capital raise means engaging with potential investors, answering tough questions, and sometimes facing rejection,” Bloem continues. “This may leave you feeling exposed. However, this is a learning process that strengthens your pitch and sharpens your business acumen. We will always be completely honest with you and provide you with feedback.”

Post-funding, the entrepreneur’s relationship with their investors doesn’t end. It evolves. “We invite you to be bravely transparent,” says Bloem. “You’ll need to provide regular updates, manage expectations, and be transparent about your business performance. This accountability is crucial to maintaining trust and setting the stage for future growth.”

Raise capital on Mesh.trade

Raising capital on Mesh is a journey filled with opportunity, learning, and growth. “Yes, it’s a lot of work, but the rewards go far beyond the funds you’ll raise,” Bloem concludes. “You’ll come out of this process not just with more capital but as a more confident, capable, and connected leader. Are you ready to elevate your business? Then let’s get started.”

Find out if you’re ready to raise capital on Mesh.