As a business owner, raising capital and a lack of capital is constantly on your mind and can be a frustrating challenge. Capital is the one thing that can stand in the way of an idea or vision and the success of that idea. Capital raising skills is not a something that every business owner is going to have knowledge and expertise in. That is where NOW CFO comes in.
With the help of a fractional CFO, business owners can use their deep-rooted connections and expertise in the investment world to lead your team through this challenging period of time raising capital. What services will be needed through the capital raise process?
How Does Capital Raising Work?
First things first: this process starts with clarifying why the company wants to raise capital and what their plans are to do with the funds. Then, a deep dive into the financials begins to determine if it is a good time to raise capital and what else needs to be done additionally.
Due diligence is performed, developing the business plan, building comprehensive financial models, deciding the debt structure, and finally the sources of funding. The last step is putting together the pitch to meet with investors.
Capital Raise Services
- Strategic Planning: A capital raise strategy will need to be put into place. Utilizing the company’s goals for the future, this strategic roadmap will show who, what, when, where, why and how the organization will pursue and obtain the funds it needs to support the growth.
- Financial and Operational Preparation: The company’s financial performance and projections will be laid out in order for investors to see that the organization is and will continue to be financially successful.
- Due Diligence: All financial and legal records, intellectual property, customer lists, contracts, and other documents that investors will need to review will need to be complied. An investor will not even look at a company without a comprehensive review of these records in order to get g full understanding of the business and discover possible problems before making a potential investment.
- Deal Structuring: Deal structuring allows the buyer of a business to shape the deal to their advantage. Different capital structures can be evaluated to determine which balance of debt and equity is right for the business. This in turn will create an offer that will appeal to potential investors. There are different types of deal structures:
- Convertible Notes: This is also known as convertible debt, which is a form of debt that converts to equity once a company raises a further round of financing.
- SAFEs: SAFE stands for Simple Agreement for Future Equity) and other similar convertible equity instruments are another mechanism for startups to seek initial funding without setting a valuation.
- Priced Rounds: This is sometimes referred to as “equity stake” and occurs when the amount of equity an investor receives will be determined by a valuation that the investor and founder agree on. By setting a valuation for the company, investors know how much of a company they will own after their investment. This option is more popular in later rounds of funding and take more time and legal fees to complete.
- Marketing Materials Development: Our team can help to complete a set of materials that funders will expect such as business plans, pitch decks, press packages, due diligence items, financial models, term sheets and legal documentation.
- Pitch Deck Creation & Delivery Coaching: Your pitch deck is potentially the most important part of the capital raise process. It is the piece of information that is going to show and convince investors.
How We Can Help
NOW CFO can manage the entire capital raising process from beginning to end. By helping you determine your marketability and how much capital you will need, we can work with your team to establish a plan of how to use those funds. Our consultants will make sure that there are no gray areas that may come with questions from potential investors. When our consultants feel that it is time for funding, we can help put together a solid pitch deck. With our full range of strategic, financial, and operational services, you will confident in your business and the capital raise roadmap that we have prepared for you. While we do not raise the actual capital for you, we are not investment bankers and do not source the investors for you. Investors want to hear from your organizations and its leaders, so we will make sure that you know the proper messaging to communicate with potential investors.
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Gain Financial Visibility Into Your Business
We provide outsourced, fractional, and temporary CFO, Controller, and operational Accounting services that suit the needs of your business.
- Hourly Rates
- No Hidden Fees
- No Long Term Requirements
NOW CFO provides the highest level of expertise in finance and operational accounting to accelerate results and achieve strategic objectives for sustainable growth and success.
After completing the form, a NOW CFO Account Executive will reach out and learn more about your needs so that we can pair you with the right Partner.