If you can answer yes to all these questions, then you are ready to raise capital now. If you can’t, each question in this checklist is also a link which will provide you with more information.
Capital Raising 101:
- Do you know why you are raising capital?
- Do you know what a typical capital raise process looks like?
- Do you know what the different types of capital are?
- Do you know the pros and cons of raising capital?
- Do you know which business characteristics are attractive to investors?
- Are you knowledgeable about professional investors?
Create the Right Strategy For Your Business
- Do you know what your company’s valuation range will be?
- Do you know how investors will view your business?
- Do you know what type of capital makes sense for your business?
- Do you know how much capital you want to raise?
- Does it make sense to raise capital now?
Prepare the Smart Way For an Equity Capital Raise
- Do you have a good transaction lawyer signed up?
- If you are hiring an Advisor, have you signed one up?
- Have you looped in all the appropriate people, including employees, investors, board members, vendors, etc. to help you?
- Do you have all the information you’ll be sharing with investors organized?
- Do you have good marketing materials put together to share with investors?
- Do you have the right information in your investor deck?
- Do you have a defensible projection model put together?
- Do you know what legal documents you need?
- Do you know how to stage your capital raise process?
- Do you have a target list of investors put together?