When you raise funds, you imagine that the company will grow once the funds are raised... The reality is quite different! We grow as soon as we start the process.

The lifting process mixes two major features: 

• We lose focus on the business;
• We are learning at high speed what will create value and the importance of structuring to start a scalability process

Although fundraising is becoming more frequent, the amounts are decreasing and investors are increasingly attentive to factual indicators:

• The turnover
• EBITDA
• The traction

Fundraising based on a simple business plan is becoming rare, and valuations are returning to normal levels. This is a good thing for good managers and business leaders who use funds intelligently.

Also, how to pass this phase which will bring means to the company to continue its development without putting itself in difficulties?

A fundraising is in the works

7 recommendations to follow before starting a fundraising process : 

• • Having an already profitable business The less you depend on raising funds, the more serene you are
  • Have cash flow To have the ability to accelerate with or without a raise;
  • Prepare the team for the absence of the CEO for 9 months The fundraising is very demanding for the CEO, he will have to be replaced;
  • Beautiful on the outside, and even more so on the inside Investors hate unpleasant surprises, it is particularly important to take care of the financial and legal aspects;
  • Have a very clear vision of what you want for the next 3 years The investor puts a ticket to finance 3 years maximum, ambitious but realistic.
  • Investors rely on people: the founders and team are the company's biggest asset, all of whom must hold up;
  • Get support: A certified public accountant who knows (really) about the subject, a specialized lawyer AND a recognized fundraiser (hence the cash flow)

Learning in the process

• The fundraiser: He helps you present the file to investors, his role is essential. As in many professions, there are fundraisers and fundraisers. The best ones have access to the best investors and it is not by chance, they select the files and will improve them, often by improving the vision and the presentation. The choice of the leveur is essential.

• Investors: There are a multitude of funds. Investment funds have a "thesis", in other words, they invest in specific subjects, at specific times and for specific amounts. It is really important to know who invests in what before starting a road show... Once potential investors are identified, the next step is to have people interested in order to choose a fund that will fit the company. Keeping in mind a fundamental point, an investor enters to be able to exit in better conditions in 5/7 years. It is not a lifetime marriage, it is not there to stay indefinitely. This does not prevent him from having the same interests as the founders... Maximizing the value of the company!

• Auditors: A fundraising involves an audit. The famous "Due Diligences". This audit must obviously not bring out any blocking points for the raising, hence the need to prepare the legal and financial part as well as possible. These Due Diligences will nevertheless allow to detect points of improvement and securing in the company, which will allow to better control the future growth.

The necessary preparation, the professionals who will accompany, the due diligences carried out and the people met during the process make this stage a formidable gas pedal of the company's structuring (a little by constraint, because what was left aside suddenly becomes urgent and important) but also clarify and perfect the company's development plan.

For this reason alone, it was worthwhile to raise funds.