How to prepare my company for a successful investment round

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The best way to prepare your company for a capital raise is to document validations of the company's growth potential, as well as traction or growth over the previous months or years.


It is important to have a business model that shows that it is actually canada phone number data viable to make a profit by injecting capital. While many startups and companies in the technology sector raise capital with little profitability or by “subsidizing” growth, more and more investors are looking for companies that do not only live off capital, but also off income.


Carrying out a growth process based on attracting prospects is necessary, as it will provide certainty that growth can be systematic and consistent. A plan to reduce the cost of customer acquisition will provide visibility that the profitability of the economic unit is being sought.


Increasing sales is also a key element, but beyond generating new clients, I recommend demonstrating that the life-time value has been extended through repurchases or increases in the value of projects. This is how the cycle is closed, on the one hand we reduce the costs of bringing in new clients and on the other, we extend the value that a client leaves in the company for a period of time.


Forecasting growth based on business data is another aspect that will give investors a lot of certainty. One way to do this is with proper forecast and sales pipeline management, since the closer the projection is to reality, the clearer it will be to understand the growth potential.


Finally, you must be clear about the financial numbers, but above all the areas of opportunity of the company, since this will practically answer the question where we should place the focus and budget for investing.


It is advisable to allocate a portion of the investment plan to the implementation of company growth strategies, as this increases the likelihood of a return on investment.


Preparing a company for capital investment requires a lot of time and attention, but with the right approach, clear numbers and aligned expectations, what Roberto Arechederra calls “The financial dance” can take place and a capital raise can accelerate your company’s scaling.