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How to raise money for your business? by Mind Map: How to raise money for your business?
4.8 stars - 6 reviews range from 0 to 5

How to raise money for your business?

based on several sources gate2growth Prof. Faltin VCs

fundamental 4 from investor view

Do I like and understand the business concept and model?

Can I make money on this investment?

Do I believe in all the info in the Investment Summary and the business plan?

Do I trust that the management can deliver?

funding process

on average it takes 6 - 12 months

adjusting misconceptions/managing expectations

you should be ready for a due diligence when you start

aligning business model to type of investor search

getting entrepreneur investor ready

establishing valuation levels

1 or more rounds. Scenario A: small funding, fast milestones preparing a leap frog round. Scenario B: big round.

finding suitable investors

several capital infusions with valuation and exit opportunities syndication (creates security for the investor)

securing investor-friendly presos

Every preso should be catered to the individual investor (prepare background info like do the syndicated deals, which sectors, exits ...) preso based on business plan with in-depth insights  

term sheet drafting

non-legally-binding terms before due dilligence. Contents goes into shareholder agreement company should have the lead in order to influence the final agreement (SA).

due diligence process

  checking of business plan stressful reaction of management is crucial (part of the game) can last months  

negotiations with investor

save some cash for alternatives in order to not be trapped

closing - shareholder agreement (SA)

legally binding involve lawyer

bizPlan

business model needs to answer

answer precisely

formal

Some personal experience from working in startups for more then a decade

Really important in front of business angels

You sell yourself as an entrepreneur

general rule of thumb: 5% of business plans are read beyond executive summary. 0,05% get funded