Very often, entrepreneurs who come to see us ask us how a fundraising with us works. Here are the details:
1. As soon as we sign the mission letter, we meet and ask you a lot of questions about your business, your processes, your figures, your margins, your team, your competitors...
2. Then, we work, if necessary, during 3 to 4 weeks on the Business Plan of financial forecasts Excel + the pitch deck of Power Point presentation (except if you already have documents on the level). Once these 2 documents are finalized, we will have you do a dry run to practice.
3. Then, we send the pitch deck to a list of investors (3,000 Business Angels and/or 10 to 50 VCs) likely to be interested.
4. The investors propose meetings or calls and we brief you beforehand on who they are and what they expect.
5. You will pitch your company in 30 to 40 minutes to the investors (VCs) or by phone (BAs).
6. At the VCs, some of them will want to see you again for a second meeting, either with a partner of the fund if he was not at the first meeting, or to dig a little deeper into the business plan. At the BAs, some of those you met on the phone will want to see you in person.
7. With VCs, an even smaller part will invite you to pitch in front of a pre-committee or a committee composed of partners and sometimes of some limited partners (their own investors if they have any). The BAs, on the other hand, can make up their mind right away, since it's their money, so there is no collegial decision.
8. One, two or three VC investors will issue a letter of intent summarizing the main points of the investment: amount, valuation, main clauses... A dozen or so BAs will be able to do the same or will add to the offer of the fund or the large BA used to investing regularly.
9. The due diligence phase begins: the funds will mandate specialized firms to audit the accounting, legal and technology aspects and they will also call your clients. We do not intervene at this stage. The BAs do not generally do extensive due diligence.
10. Finally, it's the closing, signature and payment of the funds! On average, 6 months have passed between the moment we started the mission and this moment of closing.