To commercialise and grow, your business needs capital. But the ongoing fallout from COVID-19 means this may be easier said than done. For a variety of reasons debt may also not be affordable or attainable. Waiting it out may not be viable for your cashflow, could be detrimental to your strategy or put your first to market position at risk. In this blog we share 3 tips to raise funds efficiently in a tough market.
1. Structure your raising right
There needs to be a balance between raising the amount you need to thrive and giving away too much equity cheaply. Strike a balance by considering:
Other key things to consider include:
2. Get your documentation ready
With the structure set you need to have your documentation ready before you go to market. This will help you net interested investors without losing momentum or experiencing unnecessary delays. Your documentation should:
3. Think about your timing
While COVID-19 restrictions are easing, the economic fallout continues. Given the uncertainty around economic recovery, whether government support will continue and the possibility of second wave infection, there may never be a ‘good time’ to raise funds in the short to medium term. But if your business is well prepared before you go to market it will have the best prospects for success.
There is no time like the present to get prepared and ready to launch. We can help you raise capital efficiently in these tough times with pragmatic advice and a streamlined approach to investor documentation. Get in touch, we’d love to help.