by Erwan COATNOAN DE KERDU

Intangible Capital Value

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FUNDRAISING AND AFTER ?

Published on: 12/21/2022
By: Erwan Coatnan de Kerdu

Fundraising is the process of calling on financial players to invest in the capital of a company. If you own a startup, this process is inevitable.
Here, we are going to take a closer look at what happens after the fundraising by explaining the different steps to follow.

The steps to follow after the fund raising

A. BUSINESS PLAN

When you start a fundraising process, a business plan must be put in place. The purpose of the business plan is to present the broad outlines of your project. It is an advantage for you because it allows you to make the right decisions, but also for your potential investors. Indeed, it is from the business plan that they will judge the soundness of your project and decide if they want to finance it.
Once you have raised the funds, you will have to keep the innovation strategy of the business plan and make sure you put it into practice, because all the objectives mentioned in it must be achieved!

B. REPORTING

When raising funds, it is mandatory to produce what is called a reporting (or activity report in French). Indeed, it allows the manager and his associates to evaluate the management of the startup, to measure the impact of the different actions and to take decisions accordingly.
Reporting is also necessary for your financial partners, because it allows them to have access to the company’s information, especially concerning its management. Thus, they will ask you for complete reports of your commercial and marketing actions.

C. RECRUITING AND BUILDING LOYALTY

Once the fund raising is done, you will have to recruit the right people for your startup and this requires a lot of organization, even the need to call an expert. Indeed, it often happens that managers are not trained in recruitment or that it is done in a hurry, which implies hiring people who are not always competent.
Without prior organization, the major risk for the structure is therefore to waste the capital investment in bad recruitments.

D. CASH FLOW MANAGEMENT

It is essential to manage the company’s finances well. Indeed, the funds raised are not unlimited and must be used wisely. For that, all the expenses must be structured, organized and thought out.

E. COMMUNICATION

Raising funds completely changes the internal organization of a company, in particular because the investors are now part of the company’s capital. Good communication is therefore necessary to manage relations with these new financial partners.

The head of the company must then meet the following requirements:

  • Maintain clear and regular exchanges with the investors.
  • Reassure the financier that the objectives of the innovative company and its evolution are being followed.
  • Establish a strategic and financial partnership between him and his investors.

A good organization for the prosperity of the startup

The above-mentioned post-fundraising stages must be given special attention. It is only by respecting them scrupulously that you will succeed in managing your company, and thus, in making it prosper durably.

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