Who Else do I Include in a Capital Raise Process?

Here are some of the other folks who should be involved in your capital raise.  Ideally, you want to let these people know about the capital raise prior to marketing in order to incorporate feedback and make sure they are prepared to field questions as they arise.

Accounting resources

Whether this is an in-house person or external position, whoever does your accounting will need to be involved in the diligence process.  They will need to walk investors through how the accounting is done and explain specific accounts and transactions.

Information Gatherers

You or someone at your company will need to compile all the information an investor will want to see during diligence.  This is a heavy lift, and it’s helpful to divide and conquer the load when chasing after this information.

Tax Advisors

There is an infinite number of tax implications when it comes to raising capital or selling a business. Find a good tax advisor and consult them early in the process to avoid surprises.

Your Senior-level Team

During a diligence process, you need to be prepared to discuss every component of your business.  Where appropriate, the senior members of your team need to be ready to participate in the process

Also, it’s hard to hide the fact that you’re raising capital and it’s usually not productive to do so when you’re a small company.  Your team is going to know something is going on.  We recommend letting at least the critical team members know about the capital raise in advance. This helps you set the internal narrative vs. allowing your teams’ imaginations and rumors run wild.

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