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It pays to shop for financiers: Jafferies

IT IS easy to raise money. It is not so easy to raise money with the right partner, says Dome Coffees managing director and WA Businesswomen of the Year, Patria Jafferies.

“There needs to be due diligence on both sides,” Ms Jafferies said.

Dome Coffees has just entered into an agreement with Sydney-based venture capitalist Grant Samuels Private Equity.

Grant Samuels is injecting $10 million into Dome. The coffee seller also has a $8.5 million debt facility with the National Bank.

Ms Jafferies said Grant Samuels was chosen from a field of 13.

The Dome board actually hand-picked the financiers they shopped their plans to.

She said seven months was spent on due diligence from both sides.

“We had to make sure our financier had the same long-term view as we had,” Ms Jafferies said.

“I don’t think companies raising capital look at due diligence enough.

“You need to protect yourself with your agreements.

“Capital raising for anyone is letting go of where you are today to get to where you want to be tomorrow.”

In Ms Jafferies’ case, that meant letting go of 50 per cent of the equity she had in Dome.

Ms Jafferies and partner Phil May started Dome 11 years ago.

They created a vertically integrated coffee retailer that has grown to have 53 retail outlets and two roasting facilities.

“Our dream is to have the Dome brand outlast all of us,” Ms Jafferies said.

“Growth without funding is very difficult and every time you go to a bank without bricks and mortar there is a limited amount you can achieve.”

Ms Jafferies said they planned to take Dome to an Initial Public Offer over the next three to five years.

“I think we’ll be well poised to do that.”

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