ReSolve concludes fundraising for pre-revenue technology development company
Our client had successfully developed an innovative automotive technology product but needed to raise funding to enable further development to meet clear market demand. Previous fundraising attempts got close but were not able to be concluded and, at the time of our appointment, remaining liquidity was running very low.
The shareholding of the company was complex and split between founders, angel investors, institutional investors and a trade investor. Given the challenges the company was facing, shareholder relations were tense and there were differing and conflicting opinions and positions.
The company was facing cash flow insolvency without an emergency fundraising which would have proved very value destructive and could have resulted in a cessation of the development. The Directors were also very concerned about their legal and fiduciary responsibilities.