What is the Best Way to Stage a Capital Raise Process?

Here’s how to structure an efficient process:

Step 1: Build Your Target Investor List

Step 2: Reach out to Target Investors and get NDA’s Signed

Step 3: Conduct Qualifying Introductory Meetings with Investors

Step 4: Conduct Early Diligence Meetings

Step 5: Get and Evaluate Term Sheets

Step 6: Select Investor(s) to go Exclusive with

Step 7: Final Diligence / Documentation

Step 8: Closing

Like any sales process, you want to keep the momentum going by setting clear follow-ups and next steps after each interaction.  Each investor has different internal decision-making processes. You need to know where they are at in that process.

Let investors know the key dates, including when you expect to receive term sheets / LOIs and when you plan to close the transaction.  This will keep investors moving and working towards these deadlines vs. dragging their feet.

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