How to Prepare for a Raise

How to Prepare for a Raise

March 18, 2020 by investor

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

Before you launch your fundraise campaign, prepare your business, investor documents, and your investor network.

For the business, check with your team, board, and investors to gain alignment.  Your fundraise launch should not come as a surprise to them. 

Prepare your documents including pitch deck, financial proforma, and diligence room.

Your financial proforma should layout how much you should raise and what you will accomplish with it.

If you’re not sure how to set this up, then write down your current revenue and the revenue you will have in 24-36 months.  From this you can extract how much funding you will need to raise and how many people you’ll need to hire.

Your pitch deck should tell the story of how your business makes money and why it will succeed.

Finally, prepare your investor network. Make a list of investors to contact, including existing investors.

Setup a few initial meetings and tell the prospective investor you plan to launch a fund raise in 3 months.  This removes the pressure from the investor and often elicits feedback on how much to raise, how to structure the deal, and more.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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NOTE: Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding. Hall Martin is the principal contact, and may be reached at http://www.investorconnect.org/contact.
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Disclaimer:
Hall T. Martin is the Director of Investor Connect which is 501c3 non-profit dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.

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