Our tips to succeed your capital raising (1/3)

5 pillars of a successful SERIES A or B capital raise:

1) Services or Technology

1. Finalized or finalizable (within 12 months)
2. Scalable

2) Target market

1. Well defined market and product/services are demonstrably cost-effective (i.e. business plan assumptions are verifiable)
2. If possible allowing for viral spread

3) Team

1. Capable in turning prospects into customers
2. Able to turn early clients into promoters

4) Anchor investor(s)

1. Presentable (reputation and adequacy with your firm)
2. Reasonable (in terms of valuation expectations and timing)
3. Reliable (in terms of ability to financially participate future raises to about 20%)

5) Exit Route

1. Identifiable (with identified strategic actors who perceive your firm as a real threat in a key market segment)
2. 5 year horizon (or before) in a context of strong growth beyond

 

Source: Alexander Partners