Raising capital can feel like a mountain to climb, but being prepared makes all the difference. Here are six things we have selected that will help you start your fundraising journey with confidence.
Get these right, and you will smoothen out the process, giving you the edge!
It’s always good to start with the basics. Investors are going to want to dig deep into your numbers, and for good reason. They are investing their money into your business, so will want to see evidence of growth and stability.
Because of this, your finances should be rock-solid and easy to understand.
Be prepared to show and explain historical financials, projections, industry costs, cash flow, and any debt and liabilities you may have. It is all about building confidence - showing investors they can trust you with their money.
When you’re asking people to invest in your business, you are not just selling a product or service. You’re selling a vision and a story. You’re selling yourself! Why did you start this journey, what problem are you solving, and why are you the best person to tackle this?
Take time to craft a compelling narrative around your narrative, and where you see your business going. Hooking people into your journey early will encourage them to believe in your potential, and ultimately will motivate them to join you on your mission.
Now you have rock-solid finances and a compelling story, it is time to create a proposal that investors just can’t refuse. Your pitch deck is a snapshot of your business that investors will be referring to throughout their decision-making process.
Keep it concise, visually engaging, and ensure it covers the essentials: problem, solution, market opportunity, success, model, forecast, and team. Don’t overwhelm investors with details, but make sure each slide packs a punch.
This should ignite their interests and open the door to further conversation.
We have crafted a compelling pitch deck template to give you the best chance at successfully showcasing your business. Just don’t forget to make it your own!
Due diligence can be an intense process, with investors wanting to know every detail of your business. To make this process easier, we advise setting up a secure data room as a comprehensive resource library for investors to access.
This should include all your key documents - contracts, compliance certificates, and any other document that is relevant to your business’ function within your industry.
Not only does this show you are organised, but also gives investors one clear point of access to find everything they need.
With InVestd, you can create your data room and allow access with ease, saving you stress and hassle down the road.
If you are planning to raise through the Seed Enterprise Investment Scheme (SEIS) or the Enterprise Investment Scheme (EIS), then securing advance assurance is a must.
It shows investors that your business qualifies for valuable tax reliefs, making you a much more attractive investment.
Taking time to ensure you have your advance assurance in place will give you the best shot at success, especially if you are compared to other, non-eligible companies.
You can apply for advance assurance all on the InVestd platform, with end-to-end support throughout the usually complex process.
Once approved, it shows investors that you have done your due diligence to maximise their benefit, instilling confidence in any potential partnership they are investing in!
One that has the potential to get missed is taking time to understand how much capital you want to raise. Different amounts are right for each business, and so grappling with this now can shape your business’ future.
Do you need a quick cash injection or long-term backing? And what level of equity are you prepared to part with? Use investment modelling tools to explore how different funding amounts will impact your business, and make data-driven decisions.
This will set you up with healthy relationships with investors from the start!
Preparation really is everything when it comes to raising funds for your business. By getting a handle on these six key areas, you will make a lasting impression on investors.
With InVestd Raise, you are equipped with the tools and guidance to help get your business in shape, and give yourself and your business the best shot at success.
Book a free, no-obligation consultation to learn how Vestd can help to give your business the boost it needs ahead of a funding round!