Raising Capital: After You Raise

Square One DSM, an initiative of the Greater Des Moines Partnership, and BrownWinick Law Firm hosted the third bi-annual Raising Capital Seminar on March 30. The seminar allowed startup founders to learn from other entrepreneurs who have gone through the process of raising equity along with angel investors who have made significant investments in startups. The Raising Capital Seminar provided an in-depth view of how entrepreneurs can secure significant equity capital to get their promising startup business to the next level.

Sheldon Ohringer, Partner at Formation Partners, shared his tips on how to keep the relationship strong with investors after successfully raising capital.

Key Discussion Takeaways

• Stay connected. Investors, especially early angel investors, want to be part of your team. They gave you money and they want you be successful. Keep people informed of where you are at.
• Email quarterly or even monthly. Often when investors stop getting updates, that is a signal the company has fallen off the map.
• When communicating with investors, give them a bullet-pointed one-page report, something that is easy to read and comprehend, with the essential facts such as sales, the pipeline of prospects, runway of money left based upon no growth in sales, new hires, expenses and payroll information.
• Be honest. You’ve already sold them on investing in your company. Now they want to know the hard numbers.

Learn more by watching the video below.

  

For even more information about raising capital, visit the Raising Capital page.