Back to Module

Fundraising Simulator

0% Complete
0/0 Steps

Participants 7202

  • Patrick Eymann
  • Oleh Oleshko
  • Israel Jay Pelagio
  • i1X472g3kSAdji haFT60TYkMo
  • m13nwqEqEjOjtvE FQUQzwwPhyBU8
Show more
Topic 10, Lesson 2
In Progress

Typical challenges during a fundraising process

Topic Progress
0% Complete

During a real-life fundraising process, CFOs face many inherent challenges in addition to being capable of delivering the deal process.  Here are some examples:

Length of process

Fundraises can take a long time to complete and it is not unusual for a full fundraising process to last between six to nine months in total.  A lot can happen during that time period which may affect your business performance, marketplace and future strategy.

Estimating your required funds

It is not uncommon for your cash requirements to materially change during the fundraising process, given the length of time from start to finish.  This may require you to raise more finance than initially anticipated.

Your time commitments

Our GrowCFO survey suggests that on average fundraising takes around one week out of each finance leader’s working month.  However, this varies significantly throughout the deal process and can be the equivalent to a full-time role for the finance leader during the peak stages of a live transaction.

Business as usual

Most finance leaders are already working flat out delivering business as usual before entering a fundraise.  It is vital to remain on top of everything during a deal process given that your business will be constantly scrutinised throughout by sophisticated investors and specialist advisors.

Sophisticated investors

A large proportion of finance providers are sophisticated investors who are supported by market-leading experts.  They have a huge amount of deal experience and robust working knowledge of deal mechanisms designed to maximise their potential returns, whilst also protecting their downside risk.  It is essential that you engage the necessary experts to properly understand the implications of each clause contained within your legal agreements and that you are fully aware of their consequences across all potential future scenarios.

Summary

Finance leaders need to plan very carefully ahead of a fundraise.  You must ensure that you have the right team in place to deliver your business as usual and to provide the expert support required throughout the deal process.

Assess your skills

What would you expect your biggest challenges to be during a fundraising process?

Have you developed strong relationships with the appropriate experts so that you can confidently appoint the right team of advisors to support you?

What actions would you need to take to ensure that your team can deliver business as usual?