Financing collection 10 simple steps to help you smooth start-up financing
don’t you want the world to be able to tell you a formula that is bound to succeed in financing
of course there is no such thing in the world, but there are at least a few ways to make it difficult for you to finance it. We can make it a goal that can be achieved. So ask yourself, how are you going to finance it? How many steps are there to implement it?
The core of
financing is to convince investors that your story is willing to "buy" your point of view, and ultimately support your management team. I’m going to talk about a specific plan to make your dreams come true.
1 creates a winning strategy
I have said this many times, but I still have to pay more attention to the implementation of a clear target financing model. What is the meaning of this sentence? If you are prepared to meet investors and raise money, you will be able to determine the firm’s "clear goals": how much money you need to raise at a given time. Then you will greatly improve the success probability of financing.
I also have some relatively convincing examples that can be learned and set up by the specific enterprise "objectives". (by the way, this largely depends on your business type and stage of development, can not be generalized. Here are the elements that need to be considered when setting financing goals:
minimum customer number
• minimum number of users
• financial indicators such as income and cash flow
product production date
2 think about what type of investment you really need, and what kind of price will you pay for it?
think about your options, and then make a cost-benefit analysis of each choice.
if you don’t understand the difference between investors, so for the company, it is difficult to distinguish the types of assets and the pros and cons. For some of the core elements that allow us to make judgments, it is possible that the convertible notes from investors or venture capitalists, or the amount of information assets.
to get information about the amount of assets, you need to consider the pricing of Equity: the company’s shares sold at a fixed price after valuation.
with convertible notes, when you convert the loan into a bill format, it will be based on the price of the notes converted into some collateral assets. There are two obvious advantages of this conversion model:
– value – added notes are much faster and more cost – effective than seasoned equity offerings. The reason is simple, you and investors can talk about some of the complex terms of equity, the corresponding file flow will be less, do not have to do so much legal work.
– the bill automatically converted into equity with the equity financing diluted theory here also allows entrepreneurs and >