Here are the steps to follow to be effective in your fundraising

Tools and advice#Maddybasics Reading Time: 07'05''17 December 2021lilzidesigns you are an entrepreneur?Maddyness has concocted a kit from the different steps to be followed to create, grow and even sell your startup.From recruitment to the protection of your brand through the financing of your innovation, you will find tips and good practices to get out of this labyrinth that is entrepreneurship.In this sheet: advice to optimize its fundraising.Share report an error Save PDF / exportdans this article 1.Choose your funding mode well2.Establish the documents prior to operation3.Opt for clarity and do not overload your pitch deck4.Do not hesitate to negotiate with investors article initially published on May 18, 2021

Tl;DR:

Raising funds is long -term work.Beyond a network of investors to build up and then mobilize time, it is a question of setting up a pitch deck capable of convincing them to trust you.A crucial step to support the development of the company, whether you are trying to launch a new product or to start conquering the international.Pitch decks are, according to Romain Dehaussy, associated with Cambon Partners, more and more "codified and standardized, even if the variants are numerous".To develop a relevant document, it is therefore necessary to understand good practices.Especially since this will determine the outcome of this future partnership, which will be subject to negotiations between the two parties.Maddyness declines advice to allow you to prepare for it.

Choose your financing method well

This is undoubtedly one of the key points to have in mind when you become an entrepreneur.Contrary to what one might think, all funding is not dilutive.For example, reimbursable loans and advances can be interesting in order to start an activity.The latter are available from banking organizations, but also from structures such as the Entreprendre or Initiative France network.Finally, subsidies like the FrenchTech Stock Exchange can generally be requested from approved organizations as well as Bpifrance.This is particularly the case with the research tax credit (CIR), intended for companies working on research and development projects.Of course, lifting funds from private investors with capital equity remains an option widely used by entrepreneurs and entrepreneurs.And this is where a pitch deck becomes essential.

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Establish the documents prior to the operation

To raise funds, the first step aimed at seducing financing organizations (business angels or investment funds) consists in sending a copy of the Executive Summary and the business plan to the interested party.It is imperative to develop these documents, which respectively identify the project and the commercial perspectives associated with it.Provide them to your interlocutors and interlocutors, even before your pitch deck, increases your chances of convincing them.This is particularly useful for standing out, while up to 10,000 companies would seek to raise funds in France each year.What is more, the fact of having previously constituted these elements simplifies the work for your pitch deck: a large part of the information already mentioned in the Executive Summary and the Business Plan will, in fact, coated in this context.Investors favor simplicity, which is why this peak is important to take into account when launching.

À lire aussiLe pitch deck grâce auquel PowerZ a réussi à lever 3 millions d’euros en amorçage

Opt for clarity and do not overload your pitch deck

The ideal pitch deck does not exceed 20-25 slides.French venture funds receive "more than 1,000 files per year" and it is even "around 5,000" for their English pendants, according to Romain Dehaussy.Their time of investigation by file is therefore limited.Simply present the problem you are targeting, the solution you bring to it and explain how you hear your plan.Remember two or three main points, those that stand out from competition and interest your customers.Do not in any case enter a granularity which would lead you to multiply the slides.Since a demonstration is mostly effective, identify one or two customer cases - by integrating a quote from them, when possible - to dive potential investors in your daily life."As long as you cannot simply explain your solution, you will not be able to convince," said Pierre-Édouard Bérion, partner at Raise, to underline the essential character of the exercise of popularization.

Furthermore, do not abuse figures.If it is important to put your kpis forward, you will master your speech more when defending it orally if you present a sleek pitch deck."The turnover (recurrent monthly and annual income), the percentage of growth, the number of customers or users (attrition rate) or the operational and commercial efficiency are thus scrutinized."Indicated to Maddyness Dave Rosenberg, Marketing Director and Private Equity Manager at Oracle Netsuite.However, all the criteria are not quantitative.The marketing strategy, the modeling of the purchasing course, the customer satisfaction rate or even consumer needs are also studied upstream of an investment - we can add figures on these subjects in order to prove our speech.No need, either, to give too precise projections in the medium term."The goal is not to fall into the details of the figures, which will necessarily be adapted as the project has taken steps," also assured Emmanuel Freund, founder of the Edtech Powerz, who made public the Pitch Deck having himallowing 3 million euros in priming.

According to Romain Dehaussy, the designs of pitch decks are "more and more sophisticated and pretty" ... To the point where "companies that do not play the game leave with a penalty".Note also that a handful of questions comes up, according to Dave Rosenberg, "almost systematic": "What is the final objective of your company?Do you know what are the forces of your product or service?What marketing channels give you the biggest return on investment?Do you have a team to make your ideas work?How are you going to find the necessary amount in order to go to scale?"It is a question of integrating, at least, all of these elements in your presentation.

Do not hesitate to negotiate with investors

After several meetings and, generally, a long phase of file study will come to sign the letter of intent (also called Term-Sheet), a document whose aim is to formalize the engagement and the negotiated parameters.After an in -depth study phase (due diligence), it is necessary that all investors sign the associate pact.First of all, the element quickly addressed is that of valuation: how much is my business worth, and what percentage to give to my investors accordingly?Questions that those who undertake face it as soon as they apprehend the start of a fundraising process.

The Term-Sheet can integrate certain clauses that it is important to know, in particular exclusivity-which stipulates that the manager will not sign a document, nor will not contract negotiations with other investors-or confidentiality-which statesThe fact of not revealing certain information deemed to be private to third parties.This document, which includes all the important points with your interlocutor or interlocutor, must contain the amount invested, the distribution of shares between investors, valuation, preference liquidations, buyout and exit clauses - althoughis not an element led to be discussed as soon as it is necessary to provide the possibility - the managerial clauses as well as governance.The probability of the investment is very strong, once this sesame has been signed.It is therefore better to make sure that it is very well calibrated.

At the start of the entrepreneurial adventure, when you filed the statutes, the question of the associate pact arose when you gathered the team that is the project.With the arrival of investors in your capital, the content of this document must be amended and take into account the new composition of the board of directors.In this document, it is a question of defining the future living conditions of your company and decision -making conditions in the event of blocking.If investors tend to repeat that the first decisive criterion is the team, we must compose the effective balance that will reign between natural persons during the daily management of the.Note that the time required for investment funds to make a decision after your pitch is around a month, according to Dave Rosenberg.You will therefore have time to prepare the adaptation.

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