Raising and Managing Equity Capital as a Startup

The key to raising and managing equity capital as a startup is to prepare ahead of time, as well as communicate and stay connected to your potential investors. The ability of a startup to determine the correct amount to raise, understand the valuation process and find investors will determine the startup’s success.

Charise Flynn, owner of c.Results, Joe Leo, Attorney & Partner with BrownWinick Law Firm and Chris Sackett, Attorney & Managing Partner at BrownWinick Law Firm discuss — all based in Greater Des Moines (DSM) — investor strategies, term sheets and negotiations in the video below.

Raising Venture Capital

Planning and Communication

Raising venture capital takes planning and communication. The significance to raising capital lies in determining company valuation and understanding what investors want. Seeking out large sums of money also requires significant knowledge about the state of your company and its growth potential. From writing a one-page executive summary to creating a pitch deck that delivers, you can ensure your startup gets off the ground. Charise explains more in the video below.

See an example of the executive summary, written by DSM-based startup Makusafe, here.

After Capital is Raised

Stay Connected

Once capital has been raised, it is vital that startups stay connected to investors. A few of the ways startups can stay connected include monthly or quarterly updates, usually by email, as well as annual in-person meetings. Startup transparency, or keeping your investors in the loop on business developments, especially when the news is bad, will benefit the company in the long term, building trust and growing to the next level. Charise explains more in the video below.

BrownWinick Summary Terms Sheet

The BrownWinick Summary Terms Sheet includes the company’s articles of incorporation bylaws, employment agreements and more. BrownWinick is a law firm based in DSM that specializes in corporate finance and securities law, employment and labor law, taxation law and more.

Download the Summary Terms sheet for more information.

The Raising Capital Seminar is an annual event in DSM that helps small businesses and startups grow and secure funding. Hear from founders and angel investors and learn how to take your business to the next level. To find more information on when the next annual Raising Capital Seminar takes place, as well as view past event videos visit the Raising Capital Seminar page.