…key accounting and financial items [startups] should consider ahead of their first institutional fundraising round.
When the time comes for seed investment, it is important for entrepreneurs to understand the financing options available to them. The two types of initial seed funding that most young businesses choose are convertible notes or Simple Agreements for Future Equity (SAFE) notes. In this post we break down these financing structures in more detail for entrepreneurs and early-stage business owners.
According to a 2017 Report by The Startup Genome Project, there are between 6,300 and 7,800 currently active tech startups in NYC, making it the second largest startup ecosystem in the world. However, only 619 of those startups were backed by Venture Capital. This is just one example that highlights the small percentage (about 8.5% in this report) that ever see access to institutional seed funding.
The process of selecting an investor and successfully raising capital is also an extremely time-consuming process, and only becomes more stressful when trying to run and scale a business at the same time. This is a key reason why many businesses take the first investment they are given, often overlooking the importance of who they are choosing to partner with. Exbo Group has assembled a list of 6 items to consider when selecting outside investors:
As you prepare to raise capital, it’s important to prepare the right materials in order to make the process as smooth and effective as possible. A successful fundraising round always starts with a robust yet concise pitch deck. In this article, we provide you with a high-level overview of the function of an A-Round pitch deck with its key components, strategies to determine if the pitch deck is working, and suggestions on how Exbo Group can help with the process.