Raising investment does not start with a meeting with an investor. It starts with getting the company in order: its strategy, financial model, management reporting, growth story and a transparent approach to risks.
An investor is not just buying today’s results. They assess how credible the next phase of growth is, how strong the management team is, how predictable the cash flow is and how well prepared the company is for the due diligence process.
Being prepared means the company has a clearly defined capital requirement, a well-reasoned plan for using the funds, a financial model that investors can follow and a realistic view of what type of capital fits the owner’s goals.
The key question: does the company need money to cover a shortfall, or to accelerate growth that has already been proven to work? Investors see a big difference between the two.
Before going to market, check that historical results can be reconciled with the forecast and that the use of funds can be tracked. You also need to decide what equity stake or contractual commitment you are prepared to offer in return for the capital.
WIZEN helps prepare companies for investment, from building the financial model to managing the capital raising process.