About Your Hosts
R. Branden Harper
Chief Operating Officer
• Fundraising game plan
• Fundraising decision points – it’s about more than just the
• Fundraising profile
• Funding paths
• Funding options at different stages of the development
• Equity vs debt considerations
• Preparing your company for investment capital
Fundraising Game Plan
• How much money do you need to raise?
• What’s that money going to be used for?
• At what cost and with what terms and conditions?
• What type of capital is the best fit for your company,
• Where do you find the type of financing you need?
• Milestone financing
Fundraising Decision Points
• Equity Valuation? What % is worth taking on investment?
• Control Are you the driver? Who makes key decisions?
• Value-add More than just money?
• Risk Tolerance Personal assets?
• Timeframe How long will raising funds take?
• Horizon Exit strategy? Build to exit? Build and hold?
• Culture Is there alignment?
Your Company’s Fundraising Profile
Stage, Traction & Capital Requirement
What is the current company stage? Rate of growth?
How big is your addressable market? Higher/lower than $1B?
Ready for scale?
o Product-Market fit?
o Revenue / pricing model?
o What does your sales pipeline look like? How long are sales cycle?
o How much capital do you need to get to the next stage?
Well-rounded and committed team able to handle increased
complexities? Need for key hires?
Equity / Debt Considerations
Bank / Debt
No Financial Covenants
No Personal Guarantees
Partner in the Business
(Board Seat, Voting
Added Value Low / None Medium High
Dilution None / Low None High
Speed 4-8 months 4 weeks
Highly variable. Typical
3-6 months focused
Up to $1M or 33% of annualized revenue run rate
› No set interest rate
› Matures in 5 years or when cumulative payments equal a set amount,
usually 1.5 – 2.5x principal
› Monthly payments are a fixed percent of revenue, 2-8% range
› Small cash upside participation
› Annual Revenues: $1M
› Principal: $200K
› Maturity: 5 years
› Payment: 5% of monthly revenue
› Repayment: 1.75x principal [$350K]
› Upside Participation: $50K at liquidity event
Know Your Numbers
• Ability to defend your assumptions: growth, capital
• Pivots, capitalization, customers
Document Your Company
• One-page/Executive Summary/Deck/Product Demo
Activate Your Network
Legal + Accounting
Customer, Vendor, Partner References
• Follow up, set target dates to funding, sense of urgency
Q&A and Thank You!
R. Brandon Harper