Farther’s Post

📊 Clear Budgeting: Ensure detailed financial planning and clear communication with investors about funding needs and usage. 🤝 Diverse Investor Engagement: Avoid over-reliance on a few investors; diversify options and manage negotiations strategically. 🎯 Targeted Investor Match: Choose investors with interest and experience in your product's market for better alignment. 🎤 Effective Pitch Preparation: Prepare a strong selling pitch, anticipating investor questions and showcasing your company's strengths.

📊 Clear Budgeting: Ensure detailed financial planning and clear communication with investors about funding needs and usage. 🤝 Diverse Investor Engagement: Avoid over-reliance on a few investors; diversify options and manage negotiations strategically. 🎯 Targeted Investor Match: Choose investors with interest and experience in your product's market for better alignment. 🎤 Effective Pitch Preparation: Prepare a strong selling pitch, anticipating investor questions and showcasing your company's strengths.

Learn more about single- and double-trigger-acceleration, two common equity fundamentals, on MoFo’s ScaleUp hub. https://lnkd.in/dw3JVkdR

Learn more about single- and double-trigger-acceleration, two common equity fundamentals, on MoFo’s ScaleUp hub. https://lnkd.in/eXEtB6zi

Learn more about single- and double-trigger-acceleration, two common equity fundamentals, on MoFo’s ScaleUp hub. https://lnkd.in/efPFJbpb

£10,000 and 3 months to prepare a pre-seed financial model... ridiculous but true 😤 When we started out with Caena and spoke with UK founders on their experience building fundraising models, we received a wide range of responses The wildest was a founder who paid a consultant 10k for a model ahead of his fundraise. Guess what's even worse than money spent and time taken? The model was completely useless for his process as investors couldn't understand the complexity One of the most insightful questions form the financial modelling session with Literally Helping Startups last night was "what should an early-stage financial model look like?" ✅ Simple: that 10 worksheet model? Scrap it ✅ Clear: your message (e.g. ambition and key drivers) must be crystal clear within 5 mins. ✅ Reasonably priced: don't go spend thousands on a model. I'm biased but it should cost next to nothing Remember, you're not a post IPO company, all your numbers are most likely B.S It's the thought process and assumptions that count not the actual output Many thanks Eva Dobrzanska, Robert McIntosh and Jonny Boyarsky for having me Founders check out LHS on discord, it's the place to be for support and resources #knowyournumbers #startupfundraising

Learn more about single- and double-trigger-acceleration, two common equity fundamentals, on MoFo’s ScaleUp hub. https://lnkd.in/g9ugSv4x

Sometimes, companies just need to build a bridge and get over to it. So there's 𝗧𝗿𝗮𝗰𝘁𝗼𝗿 𝗕𝗥𝗜𝗗𝗚𝗘 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 for that. (𝗕𝗲𝘀𝘁 𝗨𝘀𝗲 𝗖𝗮𝘀𝗲: 𝗕𝗿𝗶𝗱𝗴𝗲 𝘁𝗼𝘄𝗮𝗿𝗱𝘀 𝗮 𝗳𝘂𝘁𝘂𝗿𝗲 𝗺𝗶𝗹𝗲𝘀𝘁𝗼𝗻𝗲. 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗥𝘂𝗻𝘄𝗮𝘆.) 🚜 We developed 𝗧𝗿𝗮𝗰𝘁𝗼𝗿 𝗕𝗿𝗶𝗱𝗴𝗲 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 as one of our 4 funding products because often, that was what financial decision-makers needed. A bridge. More time. Just a bit more time to get to the shiny thing just on the horizon. 𝗦𝗼𝗺𝗲𝘁𝗶𝗺𝗲𝘀 𝘁𝗵𝗮𝘁 𝘄𝗼𝘂𝗹𝗱 𝗯𝗲 𝗮 𝗩𝗖 𝗳𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗲. A consistent case-study in our world, of scaling in an elastic fashion by using debt and equity (and other) in tandem, to get there. 𝗦𝗼𝗺𝗲𝘁𝗶𝗺𝗲𝘀 𝘁𝗵𝗮𝘁 𝘄𝗼𝘂𝗹𝗱 𝗯𝗲 𝗮 𝗳𝘂𝘁𝘂𝗿𝗲 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻. Focus on the future, ensure a healthy valuation when you arrive there. So, you're an AU/NZ revenue-generating tech-focused company with $50K+ a month in revenue, probably much more than that.   You've got runway in place, and you need to build more in to the bottom line, as you head towards something shiny and enticing on the horizon.   You want to grow your valuation so you're in an even greater position of strength when that future arrives, and you want choice and options on your side at that time.   You don't want to unecessarily dilute your equity, you want to know exactly what this short-term use of capital is going to cost so you can financially plan properly.   And if you're still figuring out what your next decisions need to be, but you need help defining that, our Tractor Capital Strategy Team will help make all this a lot clearer.   You: 'Mayday!' Us: 'Why yes it is.' https://lnkd.in/dEdXAN72

Most investors lie to you. They tell you what you want to hear to move the deal along... Or to let you down without offense. Cutting through this bull sh*t will save you countless hours & a ton of $$. And set you up for a successful raise. Here's 10 common investor lies to look out for 👇 _______ 1️⃣ ”We can close in two weeks” This has literally happened zero times. 👉 Expect 45 days minimum. _______ 2️⃣ ”We’re a really founder-friendly firm” …Until we’re not performing and you fire me… 👉 Talk to references - not the ones they give you _______ 3️⃣ ”We’re investors in Meta, Uber, and Amazon” They probably snatched up some leftovers in a pre-IPO round. 👉 Do your homework on who their actual profolio is. _______ 4️⃣ ”We’re stage agnostic” Every firm has a specialty. 👉 If they don’t? You’ll get less value. _______ 5️⃣ ”We offer a ton of ops experience” Translation: We’re peddling one-size-fits-all wisdom from our portfolio. 👉 Never as valuable as it seems. _______ 6️⃣ ”Our associates can make investment decisions” No, they can’t. 👉 Get a partner involved. _______ 7️⃣ ”We don’t require a board seat” But you always get one somehow… 👉 Assume they’ll want one. _______ 8️⃣ ”You can never raise too much money” And you can ever own too much of my company…. oh wait?! 👉 Find the right balance and raise the amount that is necessary for your business without compromising long-term goals. _______ 9️⃣ ”We’re really excited about your market” Until you turn me down because my market’s ‘too small’. 👉 Vet their understanding right up front. _______ 🔟 ”We’re too late in our fund to invest” This is often an excuse to reject your pitch without being straightforward. 👉 Don't be discouraged, keep searching for investors who are actively investing. 📬 p.s. Want more on leadership confidence? Try my free newsletter: https://scotchisholm.com/ You'll get my best posts ready to download.

One of the greatest challenges a founder faces is having their personal balance sheet closely tied to business performance. When all your wealth is tied up in your company, you expose yourself to significant personal financial risk. A good approach many founders take to solve this issue is to pursue a private equity recapitalization, in which the founder can sell some of their equity for cash. Doing so helps them take some chips off the table while also participating in future upside. Learn more about the dynamics of a private equity recapitalization. Link: https://lnkd.in/g-zBN5n6 #founders #privateequity #pathtoexit