Many entrepreneurs think that the equity financing process is pretty much done when you’ve completed a great pitch. In fact, that is just step 4 of the 12 Steps of Equity Financing! The first four steps are described in our first video above.
Once you’ve finished the pitch the really hard work begins. Learn about steps 5-12 in the video below:
The 12 Steps of Equity Financing are:
- Find potential investors
- (Informal) Initial contact with investors
- Formal introduction of business concept
- Deep dive meeting
- Resolve deal killers
- Due Diligence
- Term sheet negotiation
- Syndicate formation
- Investment document preparation
- Closing / cat herding
- Money in the bank
In the US, I tell companies to plan for six months from the beginning of the initial contact to money in the bank. In Africa, I’m told the process is more like 12 months. That’s a long time! The second video talks about some of the challenges of surviving the 12 Steps of Equity Financing.