Funding
Fundraising Done Right
While securing funding can be essential for sustainable growth, fundraising can be time consuming and inherently carries risks that can disrupt the normal day-to-day operations and hinder success of a company.
Essential offers guidance to ensure a seamless journey towards securing funding, attracting the right investors, selecting appropriate funding types, and aligning financial structure and strategies with a company’s long-term goals.
Defined Strategy
Essential starts by helping companies define the strategic rationale for seeking funding. We work closely with CEOs and leadership teams to identify the specific business goals and ambitions for the fundraising round. This includes understanding how the capital will support the company’s long-term vision, goals, and strategy. By setting clear objectives and expectations for the funding runway, we help ensure that the fundraising effort is aligned with the overarching company strategy and contributes meaningfully to its growth trajectory.
Optimal Investment
Next, a thorough analysis determines the optimal size and type of funding required. We evaluate various financial instruments such as bank loans, equity, convertible notes, and other funding types to identify the most suitable options for the company’s needs. Additionally, we ensure that the selected funding method will best suit future funding rounds, avoiding the risk of unfavourable terms that could hinder the attraction of future investors. Our goal is to support the company’s growth plans while maintaining future financial flexibility.
Investor Match
Identifying the right investors is a critical step in the fundraising process. Essential assists in creating a profile of the ideal investor, be it venture capitalists (VC), private equity firms (PE), angel investors, RDAs (Regional Development Agencies or ROMs) or other funding sources. We help you evaluate potential investors not just based on their financial contribution, but also their strategic fit and added value. Often, bringing an investor on board means gaining a (non-executive) board member. Essential provides guidance on what to expect from having a board and its members, including understanding their roles, demands, and the dynamic between the board and the company. We ensure that companies are aware of their obligations, liabilities, and the required reporting to maintain a productive and compliant relationship.
Clear Terms
Essential helps companies understand and establish clear funding terms and structures. This includes detailing things such as maturity dates, interest rates, repayment terms, stock preferences, term sheets, shareholder agreements (SHA), and liquidation preferences. We also advise on setting up the necessary corporate structure, including cap tables, types of stock, and employee stock ownership plans (ESOP), ensuring a solid foundation for investor relations and future growth.
Seamless Execution
Executing the fundraising strategy involves an organized and methodical approach, and Essential provides guidance and support throughout this process. We assist in planning, preparing pitch decks, detailed financials, information memorandums, and marketing materials. We can assist in assessing a long list and short list of potential investors, filling a deal room for due diligence, and facilitating smooth negotiations to close the deal as sparring partner of the CEO.
Executing a fundraising process affects the whole company and requires the support of everyone within and across each layer of the organization. By fostering a collaborative effort and providing end-to-end support, Essential ensures that the management team can execute the fundraising process efficiently, effectively, and successfully.
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Take the Next Step
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