Goldilocks by Rokas Niparavičius on Unsplash
How capital raising for startups works
First things to do
Capital raising for startups is a complex task that takes on average 6 to 9 months. To get invited for a first meeting requires excellent preparation. Addressing the right potential investors with a self-explanatory and condensed summary is key to get successfully through the first check-up.
Attractive and productive investors are overwhelmed by about 200 unsolicited investment proposals sent over per week. You need to stand out and address potential investors with a very personal message, best done via warm contacting.
Go well prepared into discussions and negotiations
When you manage to get through first meetings, preparation for the upcoming meetings and negotiations is key. Â Whether it covers reasonable projections, well thought-through drivers of your business case, having good benchmarking material and an easily-understandable and believable explanation of your serviceable addressable market and unique selling proposition.
You know how much of your startup you are prepared to give as a share to an investor, how you will invest the capital raised and for how long it will last in a worst case scenario. To be able to discuss your valuation, you have done your research and valuation exercises yourself.
For investors, negotiations are daily business
To be able to negotiate term sheets, again, preparation for each and every meeting is key. It covers any off-the-table tactics (whom to talk to, process set-up, etc.) as well as defining your interests and your best alternatives. Starting from your first assessment of the investor’s interests you develop options to suggest during discussions.
Final tasks
If you have come that far, you do not want to disappoint during due diligence when investors have a thorough look at your data, documentation, legal set-up and technology.
Considering all the critical elements of this 6-9 months process will make you succeed with the suitable profile of investors.
How we support startups in capital raising
A One-Stop-Resource for Becoming Investor Ready
key2investors.com is for all entrepreneurs and founders who want to maximize their chances of getting funded by professionalizing their funding process.
We guide you with a step-by-step framework through the process of getting investor-ready.
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Petra helped us in structuring the key message and all relating documents for finding venture capital for a newly founded start-up in the field of green chemicals. Petra also provided us contacts and venture opportunities for our mission. We totally appreciated Petras very experienced, well skilled but still hands-on way of working with us. Petra is perfectly capable of sensing what her customers really need. We really learnt a lot! Thank you Petra.
Petra Wolkenstein has supported and consulted us in several phases in a very professional way. Working together has been excellent when looking for new investors. She matched us with qualitatively valuable and very suitable investors. Her cross-border investor network is truly extensive. Many thanks for your excellent and proactive support!
Selling a company is a complex process. When I was looking for a buyer to exit my company, the experience of the consulting team helped a lot. In the end, the professional teaser documentation and the invaluable negotiation support were decisive for the sale.
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