How to successfully Raise up to $5m in Capital.

The following 8 points are a distillation of many successful capital raisings on   ASSOB:

1) Write a good Story. You need create a good story. Of the many applications received by ASSOB the ones that jump out have a good story. That means that the fundamental business or idea is presented in a compelling story. As someone said long ago “He who has the beststory wins!”

2) Locate a good Board. Gather an experienced Board of Directors. Investors want to know who is going to be responsible for the money they are investing.

3) Work hard on getting a realistic Valuation. Get advice on this. Of course your company is worth millions but if you want to attract serious investors it must be priced to investors.

4) Secure your assets for investors. Things like patents and IP need to be secure for the investors to invest.

5) Prove the concept. Ideas are great but a proven concept is worth more. OK maybe it takes longer but the payoff is bigger.

6) Get realistic numbers. Work hard with your accountant to get good realistic numbers that can be defended. Accountants will extrapolate the future on whatever you give them but you must brief them that you want them to challenge you on every figure. Even as a Start-Up you can get useful figures. Clearly state the assumptions behind the figures.

7) Choose a clear exit. Investors want to see that there is an event in the future that they will gain a substantial reward. Maybe you build your business to be sold to a strategic buyer. Perhaps it is a listing on a stock exchange. Again speak to your Accountant and gain clarity around this event.

8) Question your Scaleability. Is your business really scaleable once you get funds. Double check the premise that makes you believe your business is scaleable. Could it be done without you?

Pacific Blue Financial Solutions is a registered ASSOB Broker and can take you through a successful capital raising.  To contact us either use this form or phone (02) 9029 4400 for an obligation free meeting.