One final worksheet to round out your investor approach strategy. Then it’s time to start running!
Worksheet III* is every bit as simple as Worksheet I was because it relies on much of the work you’ve already put into this. You’ve already designed your preferred form of investment and the terms associated with that form. And you may have already defined whom is the preferred lead. If so, great! Fill in the form and warm up the phone! If you don’t yet know who would best lead this round – be patient. That doesn’t mean you shouldn’t start the conversations with your targeted investors. Many times, the lead only emerges after conversations with multiple prospects. But in our experience, it remains valuable to go through the exercise of identifying a preferred lead even if they don’t end up taking the reins.
The balance of this form is pretty much about gathering information you already have. Past rounds, a current capitalization table (we’ll have a future blog on that delightful topic), capital raised to date and the form it took are all things your future investors will want to know.
And finally, what’s your eye on the future? How much do you expect to need to raise in future rounds? This is where “mastery” really comes into play (a soon to be released blog and tool). Investors rightfully want to know how much dilution they may suffer in the future. Or they may want to know how much participation they can expect in the future. Either way, be sure to have thought through this before your first investor meeting in the current round and be sure to have a well-developed point of view. Whatever you do, don’t be caught short on this topic – it could cause the meeting to end promptly. More promptly than would be good for you. Use it as an opportunity to gain the confidence of your future shareholder.
Go to www.nrpworldsos.com and register for free access to the NRP Vault and to see more helpful content to help you along your entrepreneurial journey whether you are a founder, a supporting organization or even a potential investor.
*available free of charge when you register for NRP Vault access on our website at www.nrpworldsos.com
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