The fundraiser is an intermediary who accompanies people with projects or company managers in the presentation of their project. His objective is to teach the person accompanied to know how to sell his project in order to convince and give confidence to his interlocutors. The fundraiser helps the entrepreneur to present his projects in the best possible way to obtain financing.
The duration of the intervention varies according to the case and can extend over several years depending on the situation of the company that has requested it, the amount of the financing needs of the company, the nature of the company and the type of project it proposes.
A fundraiser’s contract governs the relationship between the company seeking financing and the intermediary who accompanies it.
Advimotion is a financial consulting firm that assists startups and SMEs in obtaining non-dilutive financing and equity fundraising. We also act as advisors in corporate divestiture transactions to best represent the interests of sellers.
We offer strategic consulting and outsourced CFO services to ensure the financial and operational monitoring of your business. Finally, we take care of the drafting of investor documentation : business plan, pitch deck, creation of reporting files and valuation calculations.
For more information, please contact us.
Remuneration in the fundraiser contract
One of the key points of the contract is compensation. In general, a fundraiser is remunerated in two ways: a fixed fee for the realization or the revision of the investor documentation (pitch deck and business plan) and a variable fee corresponding to a percentage of the financing brought to the company.
At Advimotion, we have a multi-criteria fee schedule to determine the most appropriate fixed fee according to the stage of development of the company and its financial capabilities. In addition to the documentation aspect, it includes pitch preparation, valuation calculation and advice on the company’s structure and business model.
The success fee is a percentage of the money raised by the fundraiser. It is a real incentive for Advimotion. This remuneration model is challenging and pushes us to accompany you as best as possible to achieve successful fundraising. That’s why we work with companies we really believe in.
The other important clauses of the fundraiser contract are
- The duration, which is usually quite long because raising funds takes time. The contract is governed by a period ranging from 6 months to one year. Indeed, there are several stages in a fundraising: the first stage, which is the preparation of the documentation and the pitch, can last on average 3 months. Then, there are the phases of meetings and exchanges on the project which constitute the second stage which lasts 3 to 6 months. Finally, there is the final stage of negotiation and finalization of the operation which can last from 3 to 5 months.
- Confidentiality because we are committed to protecting your interests. The confidentiality agreement also called NDA (Non Disclosure Agreement) is a document that serves as an agreement between the two parties and which commits them to exchange in an exclusive way, to keep, on a strictly confidential basis, all information that will be brought to their knowledge. This document therefore prohibits the disclosure in any way whatsoever, the information to any other person or entity. This document provides protection to both parties in the event of interruption and stoppage of negotiations. It must be concluded as soon as possible within the framework of strategic negotiations and must include the sanctions foreseen in case of non-compliance.
- The obligation of transparency of the parties because it is essential to work in a climate of trust in order to guarantee an effective collaboration. During this stage, the entrepreneurs commit themselves to provide all the information necessary for the study of their file, which must be fair and true. Entrepreneurs also have a duty to keep the fundraiser informed of events that may occur during the fundraising process that could have a positive or negative impact on the company’s cash-flow, business, workforce or market.
To find out more about our intervention methods and the content of our fundraiser contract, please contact us.
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