If you read our August newsletter feature article, you know that we are all about helping our clients prepare for investment rounds. But did you know that preparation extends far beyond reviewing your Fidelity account to ensure your cap table is correct and your data room is up to date?

Investor readiness is more than just documentation and presentations. It’s a team effort, and just as valuable as the materials you provide is the savviness of the people participating in the process. So we’re continuing our investor readiness theme to help you understand the parts of the process that are rarely covered:

1. Do your homework first
   You’re probably well aware that potential investors will be looking at all your information, but are you looking closely enough at theirs? Make sure that the investors you target meet the criteria for what’s right for your fundraising. Are they experts in your type of product or technology? Do they write checks that are within the range of your goal? Do they typically lead, participate, or close fundraise rounds? Do they have companies in their portfolio that compete with you? You should know all this information before approaching a potential investor.
2. Make sure your pitch deck is ready to roll
   There are resources out there on what needs to go in your pitch deck and why. Make sure you’ve covered all the bases that investors expect (a description of the problem and how you’re solving it, financial projections, key team member bios, how you’re getting traction, and more!), and when you’ve got a draft ready, have smart people who’ve done this before reviewing it.
3. Sync up on your story
   Identify the members of your team who may be brought in to participate in the diligence process (chances are this list is bigger than you think!). Make sure you’re all on the same page about the story you’re hoping to tell investors, and what the key points of that narrative are. What are the data points each of them has to drive home the message that your team is going places?
4. Know what you’ll need to provide
   Founders are often surprised by the breadth and depth of a typical diligence request list. Make sure you review the list early - well in advance of when you’ll be asked for materials - then gather what you have and store it in a system that will allow you to easily provide access to reviewers.

If you’re feeling pretty good, but not 100% sure about these things, and you’re getting ready to fundraise, we have good news! Not only does our client services team routinely provide helpful information to companies like yours that are preparing for fundraising, but we’ve got some exciting tools coming your way to help make your preparation even easier. So please stay tuned!

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

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