Raising Capital
If you are raising money for your business it is important to showcase the key levers your business does efficiently that if the investment came in, you will quickly and swiftly be able to deploy the resources in those key levers to scale your business and provide a valuable return for your investors.
Some Investors will invest in something as simple as an MVP, however many investors look for post revenue businesses that have a proven system that can use more resources to hire additional people, scale processes, or run more ad money into the top of the funnel.
Here is an example of a pitch deck our team at Jarbly creates for investment capital. Here is an example of the detailed financial model we create for an investor.
Most investors will want to see an exit plan within 5 years. If you are raising money for a tech venture and can showcase a positive ROI within 1-2 years with the potential for a 200 – 300% return (and more within the first 4 years), it will be very attractive for an investor. However, some investors will be perfectly fine with a long term play if there is a plan for raising future capital.
Traditional investments are between the 5% and 15% annual return range. When investing in a business, whether a startup or a small to medium sized entity that is just getting its feet wet, investors view this as a riskier alternative to the stock market or real estate and would like to be compensated for such if they are giving a capital infusion in kind in proportion to the risk tolerance they will allow for their portfolio.
The safer their return (in terms of the potential floor vs. ceiling of their capital), the closer you can come to the 15% return rather than the multiplier they are seeking with an injection into a startup, but most business investments are riskier ventures that the investor is hoping will be the next unicorn and they would like to be compensated for such risk.Â
Showcase conservative realistic projections whilst still showcasing the attractiveness of the total addressable market.Â
Do not just add costs and expenses for the sake of it. The best investments to embark on are the ones where the founders have a clear understanding of their absolutely necessary expenses and what it takes to make it profitable with an exact timeline projection.Â
At JARBLY, we help you discover this and prepare these materials for you to find a true breakeven.Â
Many businesses will qualify to raise capital in the form of a seed round with an angel investor. If you are doing considerable business, you will want to consider a more serious investment from a VC firm.Â
The amount of equity you will have to give up or debt you will have to take on will be dependent on how successful your business is and the potential for growth.
Contact us about your business to see if it would qualify for an investment and to tap into our network to get an injection of such. We typically look for MRR above $15k+ but are open to a variety of businesses and concepts.Â
Contact us to help you with your venture or acquisition:
Phone – (800) 773-1523
Email – [email protected]
Share post:
Leader in Acquisitions with Expertise in Representing Sellers & Buyers on Deals
Jarbly is a leader in acquisitions with expertise in helping with listings, negotiations, LOI's, asset purchases, company purchases, and real estate purchases. JARBLY has access to high net worth individuals if you are on the sell-side and businesses that may be of interest to you if you are on the buy-side.
Contact Us
- Phone: (800) 773-1523
- Email: [email protected]
Play
