Maximise your fundraising potential: a checklist for fundraising success

Hi, this is Steven from Drop. If you’d like to see if we can help you grow your business get in touch today.

In today’s email:

• Maximise your fundraising potential: a checklist for fundraising success:

  • Preparing to raise funds

  • Technical details

  • Preparation

  • Managing the fundraising campaign

  • Negotiating the terms

  • Closing the round

• Drop Accelerate Programme is now accepting applications

• Tools to help you grow

Maximise your fundraising potential: a checklist for fundraising success

Are you getting ready to raise funds for your business? If so, congratulations! This is an exciting time in your journey as an entrepreneur. The process of raising funds can be complex and time-consuming, but with the right preparation, it can also be incredibly rewarding. That's why we've created this fundraising checklist, to guide you through the process and help ensure that you are well-prepared.

Preparing to raise funds

Before you start reaching out to investors, it is crucial to have a clear understanding of your business and its potential. Here are some important questions you should ask yourself:

1. Is your business or idea viable and currently working?

2. What makes your business unique and valuable?

3. Why do you want to raise funds and how will they be used?

4. Are you looking for funding alone or do you also want expertise and guidance from your investors?

5. What are your criteria for an ideal investor?

6. Have you explored other financing options such as loans or revenue-based financing?

Technical details

Before you start reaching out to investors, make sure you have the following technical details sorted out:

1. Choose someone to lead the fundraising efforts.

2. Decide on the amount of funding you wish to raise.

3. Determine how you will use the funds.

4. Consider the amount of equity you are willing to give to investors and what valuation you will use.

5. Check your eligibility for EIS or SEIS advance assurance.

Preparation

To get yourself and your documents ready, it's important to take the following steps:

1. Talk to other founders who have gone through the process to get some tips.

2. Create a financial forecast:

   1. Agree on the key assumptions for the financial model.

   2. Test out different scenarios in the financial model.

   3. Choose the final version of the financial model to send to investors.

3. Write a clear and compelling storyline for your pitch deck:

   1. Decide which slides to include in your pitch deck.

   2. Collect relevant traction metrics for the pitch deck.

   3. Write a draft pitch deck.

   4. Design the final pitch deck.

   5. Get a professional pitch deck review.

4. Test your pitch with friends or colleagues.

5. Get a professional valuation prepared.

6. Set up a virtual data room with additional information for investors.

7. Anticipate and prepare answers to common investor questions.

8. Practice your pitch.

Managing the fundraising campaign

1. Set up your investor relationship management (CRM) system.

2. Research potential investors to approach - LinkedIn can be a great source for investors

3. Send LinkedIn connection requests to investors, including a personalised compliment.

4. Send personalised follow-up messages to build rapport with investors

5. Send regular updates to investors.

6. Encourage investors to make commitments.

Negotiating the terms

Negotiating the terms of investment is a crucial step in the fundraising process. Here are some tips to help you navigate the negotiations:

1. Take a step back and try to understand what's important to the investor.

2. Think about how different terms might affect potential exit scenarios.

3. Review the term sheet with a lawyer, other founders, or public examples for guidance.

Closing the round

1. Decide which investors you want to work with.

2. Have your lawyers prepare the necessary contracts.

3. Get all the legal documents signed.

4. Congratulate your team and celebrate your success.

5. Announce the investment to the public with a press release

Raising funds for your startup can be a complex and challenging process, but with the right preparation, it can also be a successful and rewarding experience. We hope that this fundraising checklist has provided you with a comprehensive guide to help you along your fundraising journey. Remember, taking the time to think about your business, your goals, and your strategy will make all the difference.

As you work through the checklist, don't hesitate to reach out for additional support or guidance. Whether you're seeking advice from other founders, working with a professional firm, or testing your pitch with friends or colleagues, there are many resources available to help you succeed.

If you’d like to see if we can help you raise investment for your business get in touch today.

Take your business to the next level! Applications for the Drop Accelerate Programme are now open.

Our team brings extensive experience and expertise to help guide you through the complex process of building, raising funds for, and scaling your business.

1. Develop your idea with our mentors

2. Create a revenue roadmap

3. Launch your business with legal guidance

4. Validate your idea

5. Develop a visually stunning brand

6. Define your brand voice

7. Develop a demo video

8. Create an impactful pitch deck

9. Prepare your fundraise

10. Launch your campaign and connect with potential investors

Whether you're looking to start your first business or grow your existing one, we're here to support you every step of the way.

Tools to help you grow

• Attract investors and secure funding

• Secure business loans

• Claim back up to 33% of your R&D costs

• Secure grant funding

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