James River Capital solves the problem of how the growing number of entrepreneurs find the funds they need to start and grow their businesses. The company was founded by Paul Saunders, who continues to act as its chairman and CEO. He is a career investment banker who rose through the ranks until he was able to acquire his own firm.
James River Capital was formed in 1995 when Saunders and Kevin Brandt bought Kidder, Peabody, and Company and changed the name to James River Capital. The firm is both a registered investment advisor and a registered commodity trading advisor. The firm offers a full range of services including credit, equity, and alternative strategies.
The firm focuses on creating businesses rather than out-competing existing businesses and offers several tips to prospective entrepreneurs. The first is bootstrapping growth by starting with personal savings and expanding with profits. Taking on investors adds costs and adds extra layers to business decisions as other peoples’ interests must be considered. Taking on outside capital can help growth at the right stage, but poor timing can hurt growth, and many investors want to see that an entrepreneur has put in their own money at the start anyway.
James River Capital also recommends looking into crowdfunding and is exploring new ways to assist businesses in this area. Crowdfunding raises money from many investors and builds a social awareness and customer base that more traditional capital options don’t offer. Of course, loans and private capital also remain viable options. Each type of financing has its own pros and cons that mean each individual business may be better served by a different capital mix. James River Capital helps businesses determine what’s right for them and helps them raise those funds.