Everything You Need to Know about Business Fundraising Services
Everything You Need to Know about Business Fundraising Services
In an ideal world your company would be making enough money to be able to expand and grow naturally. However, sometimes you have to spend money to make money. Almost every company has to raise funds at some point to grow and scale.
Every successful business reaches a stage where it has to choose its growth path. There are several ways in which to solve the problem of raising funds for business growth.
Five types of fundraising for your business
Entrepreneurs need to find ways of either freeing up capitalwithin their operations or reaching out to potential outside investors for a
cash injection. The five major sources of corporate funding for a business are:
1. Retainedearnings
Retained earnings are theamount of profit a company has left over after paying all its direct costs,
indirect costs, income taxes, and dividends to shareholders. Thisportion of the equity can then be used for expansion and development.
2. Debt
Loans or overdrafts that must be repaid later.
3. Equitycapital
Equity capital is funds paid into a business by investors inexchange for common or preferred stock.
4. Angelinvestors
Angel investors arewealthy private investors who aim to help businesses get established. Their
funding terms are often more favourable than those of other lenders.
5. Venturecapital investment.
Venture capital is financing that investors provide to start-up companies and small businesses with long-term growth potential. Venture capital generally comes from investors, investment banks, or other financial institutions.
All these options have their own advantages and disadvantages. It pays to get in expert fundraising services in order to choose the right course of action for your unique business.
The benefits of using a professional fundraising service like Outsourced CFO
Fundraising services can help you raise the money you need to keep your business running. There are a number of benefits to using fundraising services like those offered by the team at Outsourced CFO, including:
- You can focus on running your business
- You can get expert fundraising advice
Outsourced CFO's Funding Readiness Journey
The first step is conducting a Fundraising Gap Analysis. This dives into the details of the business and provides clarity and direction. From this flows the strategy, financial modelling, valuations, due diligence, investor's collateral, and investor linkages.
Fundraising Gap Analysis
This identifies the potential roadblocks and opportunities for your company’s fundraising. It identifies the direction to take with your fundraising, the type of capital you should consider, and the suite of documents and details that you should prepare.
Fundraising strategy and deal crafting
It’s critically important to start narrowing down whether you are raising equity or debt – or a combination of these – and under which terms you would accept this kind of funding.
Financial modelling and forecasting
Our fundraising teams have a wealth of experience in building or refining your financial forecasts so that investors can have confidence in your offering.
Company Valuations
Understanding the value of your organization when you head into a funding round is critical and knowing upfront the drivers of value that investors will look at along with the valuation metrics they will likely apply will make a huge difference.
Due diligence pack preparation
Having a CFO on board that understands investor questions and how to position their answers can make all the difference at the negotiation table.
Investors' pitch decks and collateral
Knowing what elements of your company to share – and more importantly, which ones not to share – plays a big part in every fundraising drive. We help prepare the right content for investor conversations.
Investor access and dealmaking
There is so much capital out there, and your time is a critical resource. Only spend it where there is a good mandate fit.
While you might not be able to afford a full-time professional for this task, you can’t afford to be without one.
Whether you select a 10-week or 6-month journey the destination is the same – accelerating your access to funding and unlocking your next phase of growth. Reach out to the Outsourced CFO team and get the expert assistance that you need in order to access those crucial funds. For more information visit www.ocfo.com
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