A successful fundraising campaign begins with a solid strategy, a clear understanding of the market opportunity, excellent presentation materials, and a carefully developed list of targeted investors. These activities are critical to the success of the venture, and management needs to be involved. Yet too often, businesses appeal to the investment community without doing their homework, only to find they have to come back later with different projections and changed strategies, which can wear out the company’s welcome and disrupt momentum.
Investors will tell you that first impressions count, and that the majority of companies do not present themselves well initially. Management often use converted sales presentations, provide unrealistic financial projections, and are impractical about their capital requirements or likely valuation—all of which can turn investors away. Most businesses benefit from taking a step back and slowing down the process, making sure that all their materials are clear and address the key issues for investors—and that the business is ready for due diligence. This process takes time and planning with management to ensure that the company has proactively addressed what investors will need to understand about a business (not just what a potential customer, employee, or partner might need to know).
Businesses need a very succinct message for a core group of influencers who might not invest directly, but will forward your information to other investors who have specific experience or interest in your industry. These influencers won’t take the time to read a 30- to 45-page business plan, at best you may have a few minutes to pique their interest; they will look at the industry and the amount of money being raised, then decide to forward or not.
Before you reach out directly to both investors and influencers, it’s important to put your best foot forward and have your entire portfolio of materials polished and ready for prime time. This where we can make the biggest difference. Learn More About How We Can Help