How to prepare your company for a successful investment round
One of the challenges for business growth is having the necessary liquidity to make investments that allow increasing revenue, improving operations or increasing installed capacity. This is where raising capital becomes a key line of action for founders or managers.
When to raise capital for the growth of my company
If you are thinking about receiving financing for your company, it is important to make the necessary preparations to ensure that it is attractive to investors. This will depend on the size of the company, the investor profile, the type and amount of investment you are seeking, as well as what you are going to invest in.
To properly prepare the company
You must first understand when it is appropriate to seek investment and when it is not. Talking with Marcus Dantus , shark of Shark Tank Mexico , he mentions that there are certain moments where it is easier to get the attention of investors, the common denominator is when there is already a validation of the solution iran telemarketing list to the problem that the idea solves, a sales traction or when you can at least execute the idea.
What does an investor evaluate to invest capital in a company?
In the CrecedorX episode with businessman and investor Roberto Arechederra , he explains to me that for a successful capital raise to occur, what he calls “ The financial dance ” must happen, which is made up of three elements: an ireland lists investor, a good company, and trust.
The investor expects a return on investment, although there are some who invest in charity or with other interests, the majority expect to make a profit on the money invested.
On the other hand, there is the company
Here it is very important that the founder or director is very clear about the current state and what he expects from the investor beyond money. Maybe he has a good product, but he does not have a defined business model or he does not know how to scale the company.
The entrepreneur or businessman must be clear about what he is going to offer the investor, what he wants from him, where he wants to take him and how he is going to return his money. When this is transparent, both parties have aligned expectations and this contributes to the third element, trust. This is what unites them and ends up making the financial dance happen.