How To De-Risk Your Capital Raise

Founder: “I’m already in conversations with five investors, so I wanna see how that goes first before looking for other avenues.” ❌ ❌

Why this is a mistake and how to de-risk your raise:

– Investors keep conversations going to build their pipeline, but it doesn’t mean they will invest in your company. Maybe they invest now. Maybe they will invest in the future. Maybe they will never invest.

– It can take anywhere from 3 to 6 months to see money in the bank. Do you have the cash flow to wait?

– What if after the 6 months they pass? Do you have a plan B?

IT’S WAY TOO RISKY AND STRESSFUL to raise capital like this!

Five ways to de-risk the raise:

1. Don’t rely on a few investors to close your round.

2. Have as many conversations as possible with different investors. Before, during and after the raise.

3. Get an intelligent deal room that provides you insights into the most engaged investors so you can focus your attention on them first. (We use CRIISP- DM if interested)

4. Try to get the faster YES or NO by having all the information well organised and easily accessible

5. Attract investors via presentations, conferences, events, webinars.

Looking for a platform to raise capital? Click here to discover how Wholesale Investor can help you.