What Documents do you Need?

What Documents do you Need?

December 13, 2019 by investor

Before you launch your fundraise, you’ll need to build some basic documents for pitching the investor and following up their due diligence.

Start with a basic pitch deck, ten to 12 slides, that includes a non-confidential introductory version of your deal.

For first presentations to an investor, keep it simple and focused on the core. The goal is not to tell the investor everything. Instead, tell him the key value points in your deal, along with basic details such as how much you are raising, and what you are going to accomplish with the funds.

You’ll also need a terms sheet that an investor can sign to join the fundraise. You want to be able to take funding when offered. If you don’t have a lead investor yet, then start with a convertible note with a standard discount rate, interest rate, and cap rate.

For your diligence box or what some call a dataroom, you should gather your documents regarding articles of incorporation, entity filings, patent filings, income statement, balance sheet, and 3-5 year financial projections.

With these basic documents in hand, you are ready to engage investors.

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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.