10 Steps of the Fundraising Process – Full information
Step By Step Process Of Fundraising | 10 Steps for Start-Up Funding
We tell you business ideas and ways to grow that business. Today our topic is Steps by step process of Fundraising, we have talked about fundraising before. Last time we said sources of fundraising and now we will tell you steps of fundraising. Today we will tell you some steps where we will discuss with you about fundraising, such steps you have seen only in premium content but today we will provide you these steps about fundraising for free. So read this post in its entirety so that you can know all the information about fundraising.
You need to create a legal structure for your Business
If your Proprietary company or Partnership company or Limited liability Partnership means what we call LLP, you cannot fundraise if your company is of this type. You can only do fundraising in a Private limited company or a Public limited company. PE&VC can later invest money in a Private limited company and if there is an IPO then you have to go to a Public limited company for this. First fix the legal structure of your company.
Now do market research. Research how many customers you have in your market. If you have a cab company then see how many customers you have in the market to take your cab service and if you have any food company then look at the same number of customers to take that food service. First do a good market research such as –
- Market reach?
- Number of customer?
- Market size?
- Problem you are solving?
- How you can earn revenue from the market?
- Market positioning?
- Break even in how many days?
- What is your vision?
- What is your future plan?
- How many staff do you want?
- How do you like technology?
- Manpower is required
- Legal expenses
- For Sales Advertising
Budget sheet question
- Write down what you will do with the money, because investors will believe when you say so.
- How do you use that money?
- How much money do you want?
- Where and how much budget will be spent?
- How to optimize these costs?
- How to do more at a lower cost?
Find the right Investor for your Industry
- Sequoia Capital – Fintech
- RPG Ventures – FMCG or Health & Wellness
- Accel Partners – E-commerce
- Nexus Ventures – Consumer business service
Create a pitch deck
- How much money do you want?
- Why do you want money?
- And how do you spend that money
- First, create a simple cover page
- Then give the team information there
- Give details of the product and technology
- Business model
- Competitive landscape means how many more people are around in this same business model.
- Current financials
- Market size opportunity
- Shareholder information
Perfect your investor pitch
- Peach investor
- Compose an email
- Present yourself
- Present Your team
- Respond to you
- Go ahead
- Never say ‘you have no competitor’
- Do not give unrealistic projection
- Don’t lack clarity
- Don’t take criticism personally
- Conservative number
- Tell compelling Brand story
- Keep it simple
- Exit strategy
- How much money can you invest?
- How long will it take?
- What percentage of shares will the investor who comes?
- What will be the rights between the two parties?
- Understand business process
- Evaluate business model
- Decide binding agreement
- Check finance – Here you will see your profit and loss, cash flow statement, balance sheet, exiting loan, revenue, check margin, inventory turnover ratio, Debt-to-equity Ratio, current ratio, if you have any such problem. Before that you will solve those problems with a chartered accountant.
- Legal- case on promoter, register of Companies, relationship with banks, cheque dishonour/bounce
Shareholder agreement | share subscription agreement
- Shareholder agreement
- Share subscription agreement
- Event of default
Share subscription agreement
- How many shares have been taken
- What company shares bought
- Company stake
- Data / MIS Report
- New project
- To create achievement
- What is a Private limited Company | Full Details
- Limited Liability Partnership(LLP): Basic Guide
- Public limited company Definition – Full Explain
- One Person Company (OPC): Definition, Features, Formation etc.