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Corporate Finance Division

Manufacturing Company Venture Capital

The production of merchandise for use, or sale, using labor and machines, chemical and biological processing, and tools is known as manufacturing. The term may also refer to the range of human activity from handicraft to high-tech. However, it is most commonly applied to industrial production in which raw materials are transformed into finished goods on a large scale. Finished goods may be used for manufacturing other more complex products such as household appliances, aircraft and automobiles. It may also be sold to wholesalers who in turn sell it to retailers. The consumers are the final string of the supply chain.

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Manufacturing takes place under all types of economic systems. In a free market economy, manufacturing is aimed at mass production of different products. The consumers are the ultimate beneficiary, and the profits goes to manufacturers. In a collective economy, manufacturing is frequently directed by the state to supply a centrally planned economy. In a mixed market economy, the government has only a certain degree of control and regulation.

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Modern manufacturing includes all the intermediate processes required for the production and integration of product components. The term fabrication is used by some industries such as semiconductor and steel. The manufacturing sector is closely involved in engineering and industrial design. Major manufacturers in North America are: General Motor Corporation, General Electric, and Procter and Gamble.

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Synergy Capital Markets partners with manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing.

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Fostering Growth without Diluting Equity:

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For Manufacturing 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 Manufacturing 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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