Invest in Apex Financial Group Ltd
Raising
USD$ 1 Million
One million AFG shares to be placed out at US$1 per share, minimum lot of US$500 each.
Raising
APEX specialized in addressing the financial needs of mid-markets firms in Indo-Pacific
The term “Mid-Market” typically refers to the size of a company, often measured by its revenue and/or asset base. While there is no universally accepted revenue range defining Mid-Market companies, APEX management focuses on companies with revenues ranging from US$10 million to US$50 million.
Mid-Market Firms Face These
The dominance of large investment banks and corporate finance groups in the financial landscape leaves a notable service gap for mid-market enterprises. These larger institutions primarily cater to the needs of large corporations, leaving mid-market companies struggling to find suitable financing options and guidance.
APEX recognizes this challenge and has structured its service offerings to specifically address the needs of mid-market clients seeking the services APEX provides. By offering competitive fees and high quality service, APEX aims to bridge the gap and provide mid-market companies with the financial support and expertise they require to grow, expand their operations, and pursue strategic initiatives.
The dominance of large investment banks and corporate finance groups in the financial landscape leaves a notable service gap for mid-market enterprises. These larger institutions primarily cater to the needs of large corporations, leaving mid-market companies struggling to find suitable financing options and guidance.
Apex recognizes this challenge and has structured its service offerings to specifically address the needs of mid-market clients seeking the services APEX provides. By offering competitive fees and high quality service, AD aims to bridge the gap and provide mid-market companies with the financial support and expertise they require to grow, expand their operations, and pursue strategic initiatives.
The online crowdfunding market's dramatic growth!
According to Boston Consulting Group (BCG) and QED Investors (QED) Global Fintech 2023 Report, the financial services industry is one of the largest and most profitable segments of the global economy, representing $12.5 trillion in annual revenue pools and creating an estimated $2.3 trillion in annual net profits or additional value—based on one of the highest average profit margins across all industries of 18%.
APAC, historically an underpenetrated market with strong incumbents and large revenue pools (nearly $4 trillion), is poised to outpace the US and become the world’s top fintech market by 2030, a projected CAGR of 27%. This growth will be driven primarily by local champions in emerging APAC that will solve access issues, thus facilitating financial inclusion.
Service Offerings
The APEX team brings extensive expertise in capital markets transactions and offers impactful financing solutions to high-growth, high IP companies worldwide. Within the RCEP region, APEX has identified two specific areas of focus for collaboration with fast-growing companies :
a. Online Fundraising Strategy Advisory & Arrangement Services
APEX specializes in providing advisory and arrangement services for online fundraising strategies. APEX goal is to assist clients in listing their fundraising offers on leading private equity platforms in the USA and Australasia (“PEX”), such as Dalmore, StartEngine, WeFunder, and Dealmaker. Through these platforms, APEX help clients raise funds under the SEC Reg A, CF, and D regimes. APEX would start with Reg D – 506B / Reg S raising up to S1 million and then move toward Reg A to raise up to $75 million. Additionally, APEX aim to facilitate the further up-listing of our clients to major stock exchanges like Nasdaq, NYSE, or TSX, providing them with increased visibility and access to capital markets.
In addition to online fundraising, APEX also offers strategic business development support. We are open to taking up convertible bonds offered by our clients to help them defray the costs associated with their listing preparation. It is important to note that we consider the regulatory framework and ensure that engaging in such activities does not classify APEX as an “investment company” under the 1940 Act. APEX focus is on assisting clients in their strategic growth and listing endeavours while maintaining compliance with relevant regulations.
b. Financial Licensing As a Service ("Finlass")
APEX, as the sole subsidiary of AFG, aims to provide Financial Licensing As A Service (Finlass) as its supplementary business offering. Finlass involves developing, training, and providing continuous guidance to regional representatives in the Indo-Pacific region. The focus is on educating these representatives about current trends in online fundraising through private equity portals, digital asset exchanges, SME stock exchanges (formed by various countries), and crowdfunding, particularly under SEC Reg A, D, and CF. Additionally, AD will assist the representatives by providing arrangement services and equipping them with the necessary financial technologies and facilities to offer corporate finance advisory and IPO arrangement services to their ultimate clients.
To deliver these services, APEX leverages the expertise of its founders in corporate finance and fintech domains, complemented by the presence of business representatives in different countries. This collaborative approach creates synergies and ensures an end-to-end solution.
The objective is to enable small to large mid-market firms and owners without extensive and updated industry knowledge to access cost-effective expertise and advice to serve their ultimate clients in their reachable network. As Asian capital markets and industries mature, firms and owners increasingly seek North American-style services to effectively balance their financial portfolios and integrate them into their financial planning.
By providing Finlass, APEX aims to bridge the gap in financial services and offer tailored solutions that align with the evolving needs of businesses in the region. This comprehensive approach helps clients navigate the complexities of fundraising and financial planning, ultimately contributing to their financial success.
c. Traditional Corporate Finance Advisory
In addition to its core services, APEX will also undertake traditional corporate finance advisory, merger and acquisition (M&A) advisory, and corporate development advisory assignments. These areas of focus are anticipated to present potential opportunities for AD to offer cross-border financing and IPO-related services.
APEX has established a strong foundation by leveraging top-level relationships with strategic corporate partners and investors. Our experienced principals bring deep knowledge and expertise in optimizing intellectual property, allowing us to cater to innovative companies in their pursuit of capital, market access, and liquidity. We take pride in being one of the few advisory firms that possess extensive knowledge and hands-on experience across Asia, combined with a profound understanding of the critical role of innovation and technology in today’s highly competitive and rapidly evolving business landscape.
Drawing on our comprehensive understanding of both American and Asian capital markets, APEX excels in identifying, sourcing, and evaluating potential business development opportunities. We specialize in facilitating successful market capitalization events, with a particular emphasis on guiding companies through initial public offerings (IPOs) on traditional exchanges such as Nasdaq and NYSE. APEX expertise and insights empower clients to seize opportunities, achieve growth, and maximize their potential in the global marketplace.
Business Model
One key aspect that sets APEX apart from traditional IPO and fundraising advisory models is its utilization of a success fee structure. Unlike the conventional approach where advisors typically earn a maximum of 1-2% of the total funds raised, APEX adopts a success fee model of 5% of the total equity of the issuer. This alternative approach can significantly enhance APEX profitability especially when the clients achieve their fundraising outcomes.
Assumptions:
APEX successfully assists an issuer in raising USD$ 10million in equity funding.
The success fee model offers advantages for the corporate finance advisory firm. It aligns the advisor’s interests with the success of the issuer, creating a mutually beneficial partnership. By tying compensation directly to the equity raised, advisors are incentivized to maximize the funding amount, potentially leading to increased revenues for both parties.
However, it’s important to consider certain factors when assessing profitability. The success fee model introduces a level of risk and uncertainty, as the advisor’s compensation is contingent upon successful funding outcomes. A thorough evaluation of the issuer’s business model, market potential, and viability is crucial to minimize the risk of unsuccessful funding attempts. Additionally, effective deal sourcing and strong due diligence capabilities are vital to increasing the probability of securing successful funding opportunities.
In conclusion, APEX specializes in e-funding advisory and arrangement through online fundraising and demonstrates a unique approach to business size and profitability. By adopting a success fee model, APEX aligns its interests with the success of the issuer. While this model presents potential advantages, careful assessment of the issuer’s prospects and meticulous deal execution remain crucial for profitability.
a. Establish Strategic Partnerships
APEX understands the importance of strategic partnerships in driving our growth and expanding our range of services. With this in mind, we have formed collaborations with specialized firms that focus on investor relations and marketing solutions, specifically designed to meet the unique needs of our issuers.
By combining our expertise with the specialized knowledge and capabilities of our partners, we can provide our clients with a well-rounded and effective solution that supports their fundraising efforts and enhances their communication with investors. Through these strategic collaborations, we aim to create mutually beneficial opportunities for growth and deliver exceptional value to our clients.
b. Training & Workshops
APEX is committed to assisting entrepreneurs in their fundraising endeavours. To cater to their specific needs, we offer one-day or three-day training workshops.
Our training workshops provide entrepreneurs with a thorough understanding of corporate finance principles and practices relevant to fundraising. Our experienced trainers deliver engaging sessions that combine theoretical concepts with practical insights and real-world examples. Participants will gain insights into topics such as
● Trending of online fundraising vs Traditional IPO and Series Funding
● What are the critical success factors to get investors to invest
● How to cut 11 months of fundraising prep to 11 weeks to raise funds
● How to get the funds now to grow and prevent massive dilution
● How to increase your firm’s valuation and your personal wealth
Throughout the workshops, we introduce participants to the range of services our company offers to support their fundraising journey. We highlight our expertise in fundraising advisory and arrangement, financial licensing solutions (“Finlass”), and traditional corporate finance advisory. By showcasing our capabilities, entrepreneurs gain a clear understanding of how we can partner with them to achieve their fundraising goals.
Networking is a crucial aspect of entrepreneurial success. Our training workshops provide a platform for entrepreneurs to connect with like-minded individuals, industry experts, potential investors, and advisors. We organise networking sessions and panel discussions that encourage participants to share experiences, exchange ideas, and forge meaningful connections within the entrepreneurial ecosystem.
Financial Projections
Our Team
The founders of APEX, Abigail Zhang and Charlie In, bring a wealth of experience and expertise to the table. Abigail Zhang has over 20 years of experience in business, investment, and public-company management, while Charlie In has an impressive 40-year track record in the same domains.
In addition to the founders, the operating team consists of directors and officers who are specialists in their respective fields. Each team member possesses skill sets that are crucial to achieving fundraising and listing success. Their collective knowledge and expertise ensure that AD is well-equipped to guide clients through the complexities of fundraising and listing processes, ultimately increasing their chances of success.
Frequently Ask Questions
1. What is APEX business ?
APEX serves as a corporate finance advisor for firms seeking to raise funds ranging from US $1million to $75 million. APEX guides these companies in the fundraising strategy and documentation needed for listing on the private equity portals “PEX”.
2. Who are APEX's target customers ?
APEX specializes in helping US mid-market companies, with revenues between $10 million to $50 million, that are targeting the Indo-Pacific markets. These acorns desire to be unicorns (billion dollar companies) and get listed on a US main stock exchange.
3. What pain points APEX are solving?
APEX’s target customers are not big enough to be served by the large investment banks and yet they are not that small that can be served adequately by boutique consultants.
The big banks charge upfront big fees that the firms cannot afford and APEX guides firms to raise the money they need quickly. APEX cuts 11 months of preparation for an IPO raise to 11 weeks for a Reg A+ raise of US $ 75 million.
The individual consultants do not have the breadth and depth of expertise and experience that the APEX team has, which is 30+ years of corporate finance and IPO experience. APEX team compresses the cycle time and processes to raise the funds firms need expeditiously.
4. Why The Indo-Pacific Market ?
The United States and Canada have expressed their desire to participate actively in the growth and development of the world’s fastest growing economies in the Indo-Pacific. Economic initiatives such as the Regional Comprehensive Economic Partnership (RCEP) and Indo-Pacific Economic Framework (IPEF) give rise to massive business opportunities for US companies. Countries such as Vietnam, Indonesia, India, Philippines “VIP” are growing in double digits and US firms must get in there before other economic bloc rivals.
The consulting market size in Asia Pacific is US $25 billion a year and the financial consulting market is $7 billion. It is an enormous market for APEX to tap into.
5. What services does APEX offer ?
1. Online Fundraising Strategy Advisory and Arrangement Services
– Advising firms on the fastest, shortest and easiest way to raise funds online
2. Financial Licensing As A Service (“Finlass”)
– Enabling regional reps to tap into APEX global resources to serve local clients
3. Traditional Corporate Finance Advisory
– Guiding companies in their mergers & acquisitions, public offerings, investments
6. What's the market size and growth rate ?
Based on the Grandview research report, the global crowdfunding market size was USD 1.67 billion in 2022 and forecasted to more than double by 2030.
With venture funds shrinking and financial technology as the catalyst, the online fundraising grew exponentially and also thanks to the explosion of social media touting fractional investment among younger internet-savvy investors.
7. What are APEX’s competitive advantages?
APEX founders and key officers have an average of 30+ years of corporate finance, IPO and public company experience that growing firms need to have to succeed;
APEX works closely with top private equity portals in USA and Australasia and knows how to leverage on their investor base, technologies and techniques to raise funds;
APEX runs on a low operating cost model with a high dividend payout policy giving shareholders and staff higher return on their investment.
8. What is the minimum I can invest ?
US $500 for 500 shares, $1 per share.
9. What am I receiving for my investment? (equity or debt)
Common Stock.
10. What is the dividend payout policy ?
APEX runs on a low operating cost model and pays directors a token fee and has a dividend policy of distributing at least 75% of net profits to shareholders.
11. How many shares are being offered to the public?
One million APEX shares placed out at US$1 per share.
12. How will the investor’s money be used to make APEX better and more profitable?
The goal of raising $1 million is to use it to scale up APEX business with aggressive business development. The money can be used to support customers with a Deferred Payment Scheme whereby their online-fundraising related costs are taken care of first before their fundraising.
Costs such as listing, investor relations, marketing communications, legal and audit works, corporate structuring and secretarial matters are often required to be paid in advance. APEX can help clients to lighten their upfront financial burden with the Deferred Payment Scheme. APEX firmly believes that providing such support will contribute to the overall success for both APEX and clients.
13. How often will investors be informed about APEX’s operations?
APEX will provide corporate updates every quarter and ALL significant corporate matters within 48 hours on www.ApexIPO.info website. APEX adopts a corporate governance model that incorporates the best practices of leading public listed companies.
14. What are investors expected to gain?
APEX plans on keeping the same amount of shares for the next 3 years and strive to achieve the business and profit objectives to give shareholders a higher earnings per share each year. APEX aims to be listed on the US main stock exchange at a minimum share price of $5. The current placement price is $1.
15. What will happen if APEX’s fundraising goal is not met?
APEX is confident that this placement will be fully subscribed and will operate the business as planned even with a lower subscription rate for this placement of shares.
16. Who is the lead investor for this placement?
The lead investor for this placement is Raffles Capital LLC, based in Boston, and has indicated to subscribe for up to 100,000 shares out of the one million shares available. There are 5 investors who have indicated they will subscribe for up to 500,000 shares in total.
17. Who are the shareholders of the company ?
18. What is APEX's business model ?
Traditionally corporate finance advisors charge an upfront retainer fee plus a success fee totalling between 1% to 2% on the total funds raised. APEX adopts a success fee model of 5% on the total equity of the issuer. The success fee model offers advantages for APEX in terms of higher income while in alignment with the issuer’s interest and cash flow constraints. With the skin in the game, APEX has to dispense strategy and counsel that have the highest probability of success in order to satisfy the client and to earn more than usual.
19. What is APEX's projected profitability ?
APEX total operating costs a year is $1.2 million and needs only ONE client to breakeven. From the second client mandate onwards, APEX operating profit for the year is assured. Currently, APEX has 10 clients seeking advice on online fundraising and IPO listing.
20. When does APEX plan to IPO ?
APEX is working towards a public listing on a major USA bourse within the next 24 months with a compliance listing share price of US$5 each.
21. How does APEX stay cash flow positive ?
With the funds raised, APEX can support the business development needs of up to 10 clients helping them to reimburse professional costs not exceeding $100,000 each. Generally it takes about 11 weeks to prepare and get the online fundraising operational. APEX gets reimbursed first once the client receives the funds. APEX gets a success fee of 5% on the total equity of the issuer.
22. What is the breakdown of APEX’s revenue ?
APEX main income comes from the online fundraising advisory and arrangement services. The Finlaas service is a distribution strategy to allow regional representatives to provide the APEX online fundraising advisory and arrangement services to their local clients. The traditional corporate finance advisory service is a supporting service to all existing clients.
23. What are APEX’s expenses and individual project costs ?
APEX direct operating costs per client is about $120,000 and the third-party cost is capped at $100,000 that covers legal, audit, accounts, tax, valuation, corporate support, investor relations, social media and listing costs.
24. How does APEX effectively control costs ?
APEX operates on a low operating cost model. By leveraging technology and innovative approaches, APEX has significantly reduced the timeline from an 11-month IPO preparation to an 11-week e-funding listing on the PEX platform. This streamlined approach also reduces costs, risks, and complexities, resulting in a lower total cost of fundraising for clients. In addition, APEX does not have to provide for depreciation, interest, or amortisation on any asset due to her asset-light strategy.
25. What else can be done to upsize APEX's profits ?
APEX will establish strategic partnerships that will enable APEX to offer a comprehensive and integrated approach to APEX clients’ fundraising and communication strategies. APEX will also conduct training and workshops that serve as valuable platforms for entrepreneurs to enhance their understanding of corporate finance and gain insights into the range of services offered by our company. This will result in requests for more corporate finance advisory services in areas like mergers and acquisitions, investments, divestments, acquisitions strategies.
Contact Us
Ms Tiffany Chai
tiffany@apexcapital.asia
+65 8201 3199