There are keys to exponentially increase your chance of securing capital for your business.
- Discover the seven key components to the perfect deal
- Find out what investors don’t want and mistakes to avoid
- Learn what preparation you need to do to raise capital and the steps to take
- Begin your journey to connecting with potential investors and securing capital.
The vast majority of businesses that seek capital don’t get it for three principal reasons:
1. You don’t have a viable business, or an investable business at this point of time
2. Your offer is badly communicated and you are just not getting the message through
3. You don’t know where to find investors or them you
There are basically seven key components which investors look for:
1. What market are you in – is it growing strongly and is it significant in size
2. Is there something which makes your project stand out – does it answer a problem that the market has
3. You can have an idea, but can you execute it – what does the management team look like to carry out the project
4. Can you spell out the pathway to implementing your idea and how to monetise it – such as business plan , other metrics
5. Do you have a fair view of the valuation of your business for which you are granting an equity share
6. Can the investor get their money back (hopefully with a profit) – you need to spell out the exit strategies
7. Investors don’t like risks – they need to know you have taken account of the business risks and have a way to minimise them
Capital Raising takes preparation
– Find out some of the issues –
Initially raising capital is part marketing exercise – you are in the market for funds. With that being said, raising capital (and raising debt to a lesser degree) requires a business owner to paint a picture that a potential investor or lender will find attractive. That picture is often in a number of steps such as a marketing plan, Information Memorandum, Powerpoint presentations – and will extend to introduction letters, investor showcase, business plans, Non-disclosure Agreement, share agreement, due diligence, term sheets, valuation reports and other critical steps.
As a business owner, you also need to understand what constitutes a good deal for your business too. Do you want a strategic partner, a passive investor, a majority stake or minority and can you apply the funds sourced to quickly leverage a result – all important questions in your initial quest for funds.
Ask for an initial complimentary discussion before you embark on your capital raising journey. We’ll treat your discussions in strict confidence.