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Think You're Cut Out For Fundraising? Take this quiz.

    
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Everyone knows all too well that fundraising can be downright difficult, and frankly, even exasperating. In many cases, it ends up being particularly arduous because companies begin the process before they are truly ready. There may not ever be the perfect time to delve in, but if you can honestly answer “yes” to most of the questions below, your company just may be ready to jump in:

 

  1. Do you have a decent cash cushion so that you aren’t desperate and forced to take anything that comes your way?
  • Yes: Sweet! You are in the perfect position because although you need some funds, you aren’t so strapped that you’ll end up taking money from just anyone.
  • No: Okay, so you may not need a heap of cash on reserve to guarantee leverage, but there is no denying that it creates a tremendous advantage.



  1. Do you have a realistic sense of your valuation and are you comfortable with it?
  • Yes: Great! You know your value and won’t be afraid to share this with investors, and you can do so with confidence.
  • No: You can’t expect anyone to invest in your business if they don’t understand its actual value.



  1. Do you have all of your financial matters squared away and written out in a presentable format?
  • Yes: Excellent! This is a big one. Investors want cold, hard facts and concrete numbers offer just that. And, you can really impress investors by putting together a comprehensive and easy to navigate deal room that contains all of this information.
  • No: There is no way you can seek funds without making all of the necessary calculations and projections first.



  1. Do you have all other pertinent documents ready for a due diligence investigation?
  • Yes: Awesome! Preparation is the key to a successful fundraising effort, and as mentioned above, having everything centrally located and organized will be a big help in facilitating the whole process.
  • No: If you aren’t ready for due diligence then you aren’t ready to talk to investors just yet. It is imperative to have everything prepared so you can get going at a moment’s notice.

 

Preparing for Due Diligence?

Download our complementary Due Diligence Checklist here.



  1. Do you have a strategic plan for your fundraising efforts?
  • Yes: Nice! It is crucial to have a plan of attack, along with a well-researched list of prospective investors.
  • No: A haphazard approach is never a good idea when millions of dollars could be on the line.



  1. Do you have a flawlessly crafted pitch that is rehearsed to perfection?
  • Yes: Fantastic! But, for this one, a simple yes will not suffice. The answer to this question has to be a yes, along with confirmation that the pitch addresses what your business is and what it is about, the company’s goals and values, a description of its current financial standing and expected growth, as well as a clear explanation of your current funding needs.
  • No: Sadly, it is time to go back to the drawing board and create a pitch that adequately addresses the aforementioned items and does so in a clear and compelling manner.
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