During a capital raise process, your going to get asked a ton of questions about your business. As the CEO, you should be able to answer most questions. Below a list of high-level questions to help you prepare.
- When and why did you found the company?
- Walk us through the development of the Company from founding to today.
- Discuss the current product/service offering
- What is your pricing structure?
- What are your standard contract terms?
- How does your pricing compare to competitors?
- Who are your target customers?
- How many customers do you have?
- How do your customers make decisions?
- How do you communicate your value to your customers?
- What percentage of your revenue are your largest and top 5 accounts?
- How much opportunity is there to increase revenue from existing customers?
- What’s your average customer tenure?
- What is your historical attrition rate? What about from a revenue attrition standpoint?
- Discuss concentrations in the base (geographic, industry, type of customer, etc.)
- Discuss the composition of your sales organization.
- Walk through your typical sales process.
- Where do leads come from?
- How long is the sales cycle?
- Who’s the decision maker at the customer?
- What is your sales conversation rate?
- What is your customer acquisition cost?
- How large is your current pipeline?
- What percentage of your projected revenue is already booked?
- How do you compensate the sales team?
- Where do you see the business in five years? What about ten years?
- Walk us through the growth strategy.
- Walk us through the product/service development roadmap.
- What do you view as the total addressable market size?
- What is driving the adoption of this type of solution in the market?
- What will drive demand for this product/service over the next 5-10 years?
- Who are you bumping into in competitive situations?
- How are you differentiated from competitors?
- What % of the market do you currently have?
- Where do you spend most of your time?
- Who are the key team members?
- Are there any gaps in the executive team?
- What has driven revenue growth over the past few years?
- What does your SG&A consist of?
- Walk us through the headcount by department.
- What is your gross margin %.
- What’s your cash conversion cycle look like?
- What does your ideal transaction look like?
- What are management’s plans going forward? Do you want to stay on, transition, out, etc?
- How much capital would you like to take off the table?
- How much capital do you need to achieve the growth outlined in the projections?
- How much capital has been raised to date? Who are the outside investors?
- What valuation are you expecting?
- What are the use of proceeds?
- Do you have any outstanding or pending litigation?
- What is the corporate organizational structure? (LLC, C-Corp, etc.)