Today, we’ll talk about the documents you need for your fundraise.

The pitch deck, the terms sheet, and the projections

The first document is the pitch deck.This is usually ten to fifteen slides introducing your deal to the prospective investor. It should cover the basics of the business including the problem you are solving, the solution and product you are offering, the competitive advantage, your business model, the team, financial projections, your fundraise amount, and the exit you envision.

You’ll also need a detailed 3 to 5 year financial projections often called the Pro Forma. This gives the investor an idea of what you will do the funds and how you envision the company growing.

In addition, you’ll need a data-room or what some call the due diligence box which contains key documents about your business. These documents include your entity filings, patent filings, articles of incorporation, income statement, balance sheet, and other documents detailing your business. Investors who want to make an investment will look for these documents so they can run their due diligence.

Finally, you’ll need a terms sheet which outlines the terms of the investment. Most investors will want this document as part of their diligence so they know exactly what they will be signing.

Thank you for joining us for the Startup Espresso.

Let’s go startup something today!

Copyright (c) 2024, Hall Martin and investorconnect.org. All rights reserved.

Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit 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 for the basis of investment decisions.