The fundraising package is the first contact potential investors will have with your project. Therefore, it must contain the key information that will make potential investors want to contact you to continue the fundraising process.
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.
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The fundraising file must contain several essential parts
Presentation of your history, project and team
It is about explaining in a clear and concise way your core business and your unique value proposition.
The human factor is also very important. Indeed, investors like to know the team members, their experiences and the roles of each member within the project. The team is what determines the success of a startup and presenting the strengths and qualities of each member can be relevant and reassuring for investors.
The Business Plan
The business plan allows to verify that the project is ready to be presented to investors. It must demonstrate the skills and abilities of the management team to develop the business in a sustainable way. It must also validate the financial projections with realistic growth assumptions and demonstrate the scalability of the model. The business plan is therefore a prerequisite for any operation. The business plan must contain :
An executive summary (2 to 3 pages maximum)
The executive summary is the most important part of the business plan. Indeed, investors with little time read this section first. By reading the executive summary, investors should have a global vision of the project. This includes the concept and innovation (a quick presentation of your business and your differentiation) ; the traction of the project (the turnover, the number of sales or registrations on the platform) ; the team, the main shareholders. This part is a summary of your company’s strengths.
A section on competitive analysis
A good business plan presents a clear comparison of your company with your direct and indirect competitors. This is where you prove your knowledge of the sector by analyzing their strengths and weaknesses. Your final goal is to show the positioning of your company. And if there are any issues that might prevent you from entering the market, such as high upfront costs, this is where you will need to be upfront. Your competitive analysis will be placed in your market analysis section.
A part on the market
It is very rare that the investor knows the characteristics of the market in which the company operates. This is why it is necessary to communicate on the size of the market, its growth and its segments, the characteristics of the target consumers and the way to reach them. Present the market in France but also in Europe and/or internationally according to your strategy. A competitive positioning matrix and barriers to entry. All these elements can help to better understand the market, which is why they should be included in the fundraising file. This part should give investors the image of a company that operates in a large and growing market. You must focus on the addressable market. Relying on reliable sources is essential to support your arguments and quoting them is necessary to testify to the veracity of your statements.
A section on the product/service/innovation
Here, you need to demonstrate your competitive advantage over your competitors. What differentiation does the company provide ? What innovation has the entrepreneur brought ? An innovation in usage, product, service, technology, business model ? You must highlight your differentiation from other companies in the sector and show what makes your product/service unique and special.
A section on the marketing plan in the fundraising file
This is where you describe how you plan to bring your products and services to your target customers. Describe here the measures you will put in place to promote your products and the budget needed to implement your strategies.
A sales strategy section in the fundraising package
This section should answer the question of how you will market and sell the products you make or perform the services you wish to offer. Your sales strategy should be specific. Determine how many sales representatives you will need to hire and how you will recruit and integrate them. Be sure to include your sales goals as well.
A financial section
This part should contain a P&L type forecast table, over the next 3 to 5 years, the business model, monthly expenses, cash-flow, break-even point and financial need.
This last section presents the financial objectives and expectations you have set based on the market study. You will list your projected revenues for the first 12 months and your projected annual earnings for the second, third, fourth and fifth years of operation.
If you are trying to apply for a personal or small business loan, you can always add an appendix or other section that provides additional financial or background information.
The fundraising package should be complete. It should include several documents, including a carefully crafted business plan.
If you need assistance with your fundraising file, do not hesitate to contact Advimotion.
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