How can a start up properly launch a fundraising?

Enterprises need to carry out equity financing according to the company's own development situation, and various factors such as the company's industry prospects, its own team, financial status, and standardization determine whether it is worth doing equity financing. One thing is that it is a good time for enterprises to raise equity financing when they are on the rise, and it is by no means a time to think about financing when they are in trouble. In this regard, I suggest that you can learn more about it through Ruirong's G·SSC*** "President's Business Intelligence Library".

Business valuation is a key clause in the introduction of investment, and it is often this issue that leads to the breakdown of negotiations. If the development of enterprises only needs financial support, like some domestic enterprises when financing the use of bidding mode, the highest price gets, now it seems that most of the institutions do not have a good end, most of the institutions that are willing to go out have no resources, just through the terms of gambling and other terms to restrain enterprises, once they encounter a decline in performance and other unfavorable conditions, enterprises will have to pay the price for the introduction of institutions, if the institution is introduced as a strategic investment, the valuation is in accordance with a reasonable and win-win idea, and the probability of the introduction of institutions and enterprises has increased greatly. Ruirong Financial Services specializes in training courses designed by enterprise estimation.

Before the capital party decides to enter a company, the most important thing is to outline a core enterprise competitiveness according to the business strategy provided by the management, and the core competitiveness and the operation and realization of this core competitiveness in the commercialization determine that the enterprise can enhance its value in the future, and after outlining the core competitiveness, the private equity capital will work with the company's board of directors and management to formulate an effective and feasible implementation plan. In fact, each company will have its own business strategy development plan. Ruirong Financial Services will also directly invest in promising projects, you can go and listen to their courses.

However, the capital side can often provide some suggestions to the company from different angles, the most important is the setting of the company's management system and equity structure, and the rationality of the equity structure determines the rationality of the future benefit distribution.

Ruirong's G·SSC experts remind you that if a company wants to obtain equity financing, you must be clear about this process, and prepare the information required by investors in advance, which is conducive to the financing speed of your own enterprise.

Project engagement. This is what the business owner needs to write a business plan and then give it to the investor.

2.Initial analysis uncovers enterprise value.

This is the time for due diligence, including: financial, legal, and business.

3.Due diligence.

Audit reports to see if your reports are fraudulent.

4.Business negotiations.

The terms of investment, that is, what rules and regulations are needed to negotiate cooperation, without a professional staff to help you, it is easy for the company to suffer.

5.Transaction design and investment reporting.

After the above negotiations, an investment proposal will be issued.

There are several ways to finance startups.

The first is borrowing money from relatives and friends.

The second is to apply for funding by submitting a business plan to a venture capital firm and proving that your company has a stable management structure.

The third is to take out a loan from a bank, but the likelihood of getting a bank loan is low.

The fourth is to look at your business plan from angel investors, and if it is approved, you can get their investment.

Extended Materials: 1. Precautions for Venture Financing:

1) Prepare a detailed plan: Before financing, enterprises should prepare various plans, including "Investment Proposal", "Business Plan", etc. At the same time, it is also necessary to describe the background, organizational structure, risk management, strategic position, development plan, financial statements and other aspects of the enterprise in detail, so as to make the venture financing more convincing.

2) Choose the right time to borrow: Banks are in a period of credit crunch at the end of the quarter and the end of the year, so start-ups are advised not to apply for larger loans at this time. In addition, due to the small scale of start-ups, it is difficult to provide collateral and collateral, so it is better to establish a good relationship with the bank in advance, and get the support of the guarantee agency, so that it is relatively easy to obtain a loan from the bank.

3) Establish a good reputation: Enterprises first need to establish a good reputation, and strictly manage the use of enterprise funds, turnover and financial systems; Proactively report the company's performance to the bank; During the loan application process, strictly abide by the bank's loan process, actively cooperate with the bank's investigation, and take the initiative to repay the loan when it is due. This helps to increase the bank's trust in the business and gives the bank absolute peace of mind about the safety of the loan.

2. Why start-ups need financing.

a) For start-ups, whether it is office equipment, daily expenses, employee salaries, travel expenses, a sum of money is also needed. In order for a startup to grow smoothly, it is inevitable that a lot of financial support is required.

2) Without the support of external funding, many startups rely on the assets of entrepreneurs, and it is difficult to get out of the highly competitive market. From the establishment of the business to the maturity of the development, although it is only a matter of time, it is time-consuming and more costly, and this process needs the most financial support. For a fast-growing startup, it will inevitably require a lot of financial support.

There are very few startups in the market that can rely on the entrepreneurs' own funds to succeed, but can't say no, this number is really too small.

3) After the establishment of the business, the first financing** is particularly important. It can not only maintain the foundation of entrepreneurship, such as employee company, utility expenses, but also help the company to run its business smoothly, such as business promotion and advertising marketing.

Almost every day you can see the news of various startups getting funding on the Internet, which means that many investors or companies are willing to support startups that seem to have "potential stocks".

Starting a business is a daunting undertaking that requires good preparation and a clear plan. Here's what you need to prepare before starting a business:

1.Entrepreneurial Ideas and Business Plans: A clear entrepreneurial concept and a complete business plan are the foundation for entrepreneurial success. The business plan should contain a detailed plan for market demand, audience, uniqueness of the product or service, funding, etc.

2.Capital reserves: In the start-up stage, it is usually necessary to invest a certain amount of capital in order to start a business. There needs to be sufficient capital to meet the investment and operating costs required in the start-up stage.

3.Note: Entrepreneurs need to set up a company or a team, legally register, set up a company in the form of business, and need to go to the local industrial and commercial administration department for relevant procedures to register the business.

4.Team building: Build a good team and move forward together. The team needs to be in line with the entrepreneurial philosophy and be able to collaborate effectively. As the company grows, it is inevitable to recruit people to expand the team, and you need to pay attention to the recruitment and management of personnel.

5.Publicity and promotion: It is necessary to determine the target audience and widely disseminate publicity with the help of various channels such as the Internet and social networking. Position the company's brand and establish a good company image.

In short, before starting a business, entrepreneurs need to actively prepare for the preliminary work to avoid unnecessary setbacks due to lack of planning or insufficient preparation, so as to carry out entrepreneurial actions and succeed.

For start-ups, financing is an important support for their survival and development. So, how do startups be funded? The most common way to raise money is by seeking funding from institutions such as venture capital firms and angel investors.

First, build your own business plan. The business plan needs to include the company's mission, product or service positioning, market research, competitor analysis, financial analysis, etc., to present your business idea and plan to investors. When drafting a business plan, start-ups need to fully consider their actual situation, elaborate their ideas in as much detail as possible, make good judgments and provide practical examples, which will be more convincing.

Second, actively look for the support of angel investors. Startups can network with potential funders through some angel investors' social platforms or offline events, and once they have found the right angel investors, they need to pitch their ideas to them through a detailed business plan and product presentation. Angel investors are more likely to provide start-ups with more flexible and targeted financing methods than bank loans, and investors will provide advice and suggestions in the future development of the company, which will play an excellent role in helping the growth of the enterprise.

Finally, submit a venture capital application form. If a company wants to scale further, it can do so by applying for financial support from venture capital institutions. Investors need to understand the company's credit history, as well as the company's existing business development, decide whether to choose to support the company, and also make decisions based on the company's development prospects and market trends.

Like angel investors, venture capitalists can provide start-ups with financing and other resources to support the company to grow and expand its market.

In short, how to raise funds for start-ups needs to be based on their own actual situation, fully understand the advantages and disadvantages of various financing methods, and finally choose a financing model that suits them to achieve financing success.

1. Write a business plan to deal with investors or investment managers who don't know when they will meet. Writing a business plan is not only a process of packaging and expression, but also a process of sorting out product ideas.

2. Find investors.

3. Roadshow: Participating in an organized roadshow gives you the opportunity to contact many investors at one time, which can save a lot of costs. At the same time, this kind of roadshow can allow you to meet other entrepreneurs, and it is also a good channel.

4. Interview with investors individually: The roadshow leaves a good impression on investors, and if the first impression is passed, there will be an opportunity for a private interview.

5. Transaction negotiation: The interview is to let investors understand your project and team, as for the specific investment or not, it depends on the way to play, valuation, transfer ratio, attached rights such as whether the preferred shares have voting rights, whether they are equipped with anti-dilution clauses, etc. A good project that is sought after by investors has stronger bargaining power, and striving for a good product is always more useful than negotiation skills.

6. Sign the letter of intent to invest: Be sure to carefully check the terms and conditions and think twice before signing, because only the founder is involved in the signing of the entrepreneur.

CEO) alone, the CEO should not only consider his own interests, but also consider the interests of the team, and cannot harm the people who are bored and dismantled. It is advisable for entrepreneurs who have spare energy to hire a lawyer in all aspects of financing transactions.

7. Sign formal legal documents: Same as above, this jujube is a formal contract rather than an agreement, please be cautious.

8. Equity change: It is not a simple bilateral agreement to sign, and this step needs to be completed in coordination with the industrial and commercial bureau, banks and other institutions.

9. Obtain capital injection: the investment is officially received.

1. What should I pay attention to when financing a start-up?

When start-up entrepreneurs are looking for angel investment or VC financing, they should examine the institution: if the institution is mainly passive value investment, entrepreneurs need to pay attention to what kind of value-added services the investment institution can bring to the enterprise; If institutions focus on active value investing, entrepreneurs need to pay attention to the main areas of institutional investment, which industries have resource advantages, etc. In addition, entrepreneurs need to gradually become proficient in the use of various financial instruments, such as leverage, in order to obtain low-cost financing.

1. Market size.

How big the market will be for this product. Of course, the premise is whether our products can have a certain share, whether the product or service can be accepted by people, if there is no such strength, no matter how big the market plate is, it is in vain. Of course, whether the marketing channel is successfully established is also a link that investors pay attention to.

2. The project itself.

That is, how innovative and disruptive the project is, if the products and services that bring significant changes to peers or a certain industrial field will definitely be favored, if the project is mediocre, it is not easy to arouse the interest of investors, and it will be difficult to raise funds.

3. Business model.

The main focus is whether the profit model has been built, whether the product or service has been tested to effectively generate cash flow, and whether it has achieved phased success in the regional or local market.

4. Technical strength.

Technical strength is the core competitiveness of a company, such as technology precipitation, intellectual property rights, and whether technical barriers have been built. Especially in the Internet era, various technologies emerge in an endless stream, changing with each passing day, whether the entrepreneurial project has key technologies, whether there is the corresponding intellectual property rights is particularly important, many technology-based companies are because of the core technology to attract the attention of investors.

In order to ensure the normal operation of the company, the general start-up company seeks seed financing from the third company. So, how do startups get funding?

How can I get financing.

How a start-up can get financing, of course, needs to convince these investors that they want to invest in your start-up.

In order to convince these investors, entrepreneurs need to present their ideas, products, etc. to each other. In addition, investors also need to understand whether your startup project is sustainable, whether your project or product can meet market demand, whether it is market demand, whether there is still enough market in the future, and what the profit is. Financing opportunities can only be obtained if the startup's project and product plans are clearly told to investors and presented to investors.

First, the team. 1. There are reliable, stable and complementary partners.

2. You don't necessarily need an all-star team, but you must understand the industry and accumulate.

3. The best triangular combination that bandits like: product show technology show operation, the division of labor of the three partners is the best, one is less, at least two out of three.

Second, the product and business model.

1. There are products, which have been tested on a small scale, have certain data, and are convincing.

2. If there is no molded product, make a demo first, which can show the most basic logic.

3. If there is no data, first find a benchmark company in the industry and eat his data.

3. Materials.