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Corporate Finance Division

Electric Company Venture Capital

The responsibility of the electric power industry is the generation, transmission and distribution and sale of electric power to the general public. The industry started way back in 1882 with the introduction of electrical lightning. In the coming decades, booming economic growth and safety concerns have led to the regulation of the industry. Once considered a novelty limited to rich and densely populated areas, it has become a basic necessity of modern life. By the middle of the 20th century, the power industry has become the playground of selected few. Markets are tightly controlled by just a few big organizations. In some areas, vertically integrated companies have token care of all the stages, from generation to retail. 

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In the last few decades, many countries have opened up the sector to privatization, which has resulted in stiff competition.  This change is creating a need for improved equipment, software and services to aid in the generation, transmission, distribution, marketing, trading and consumption of electricity, natural gas and related energy services.

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Fostering Growth without Diluting Equity:

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For Electricity Industry companies at critical stages of development, debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. At Synergy Capital Markets, not only do we understand the industries of our portfolio Electricity Industry companies, but we also understand the growth process - and occasionally the growing pains - they undergo.

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When venture debt is used appropriately, we believe entrepreneurs gain the following benefits:

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  • Able to raise capital in a way that benefits the team and the business as a result of the greater flexibility offered by venture debt than traditional forms of debt financing

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  • Have more time between equity rounds to build the business and achieve critical milestones, which creates potential for greater valuation

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  • Retain a larger ownership stake in the company prior to an IPO or other liquidity event

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  • Achieving milestones quickly in many cases also means reaching the IPO stage more rapidly

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