What are the investment materials needed for fundraising?
Funding is one of the most critical parts of a startup. Without enough funds, even the best ventures can fail hard and fast. This equally applies whether you are just starting out looking for pre-seed money, or are seeking a bridge round before your Series C or later. It’s rare anyone is just going to pop up out of the blue and try to throw money at you.
So, what kind of investment materials do you need for fundraising?
A Pitch Deck
No matter how you are fundraising and from whom, you’ll need a pitch deck. It is the most important item from the investment materials needed for fundraising. That’s even true if a partner of a VC firm is reaching out to you for a meeting.
Again, the key here is simplicity. You need a strong value proposition. Yet, the number one mistake that most startup entrepreneurs make is being too complicated and long-winded.
The pitch deck is not about trying to explain every detail. That is not what is going to impress or close the deal. You just want to show them you know what you are doing, you can focus and keep it simple, and to get them excited about the idea.
Stick to 8-16 slides. Streamline this step by picking a proven existing template and customize it to your company.
In later stage fundraising, the decision may be largely based on your growth, revenues, and profits. That’s where the next item comes in.
For a winning deck, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
A Business Plan
You shouldn’t be launching without a business plan anyway. Fortunately, trends have changed, and while there are many internal advantages of a full-fledged and detailed business plan, early-stage startups don’t need volumes of pages to go out there and pitch.
A one-page business plan can often be sufficient. Perhaps in conjunction with a one-page executive summary. Note the business plan used to be the most important item and the only needed as part of the investment materials needed for fundraising until it took a backseat for the pitch deck and the financial model. Nowadays, the business plan is more used as an 18 to 24-month roadmap of the execution.
This demonstrates that you can focus and keep it simple. It makes it far more likely to maintain investor attention too.
I cover how to write a pitch deck in the video below.
In combination with the pitch deck, these are the two critical pieces of the investment materials needed for fundraising. As part of the financial model you will need to have in place the following:
- At least 3 years of financial projections
- The amount you are raising and how you are planning to deploy the capital
- Your valuation
Once you have term sheets and interested investors they will want the deeper details. This is what your online data room is for.
See How I Can Help You With Your Fundraising Efforts
- Fundraising Process : get guidance from A to Z.
- Materials : our team creates epic pitch decks and financial models
- Investor Access : connect with the right investors for your business and close them