1. Brief overview of the company. Initial meeting with the company leadership to establish if the company is a great prospect for raising capital. Sometimes we have to turn down entrepreneurs who have unrealistic expectations of what their companies may be worth and how quickly and how much money they can raise. The competition for capital is relentless and it is our view that only the companies with groundbreaking business concepts and that are led by great teams stand a chance to raise capital.
2. If the company is a great prospect for raising capital we often suggest that we conduct a risk analysis and optimization process in order to identify potential risks within the company. We also provide an action plan for reducing these risks. A lower risk profile often has a very positive impact on the company's valuation, which in turn reduces the potential dilution of share capital in the event of external equity financing. The process also better prepares the entrepreneur for meetings with potential investors.
3. Following the risk analysis and optimization process we may also perform a valuation of the company based on reasonable and logical assumptions about future prospects. We make sure that the company leadeship can support these assumptions in a convincing manner in meetings with potential investors.
4. In addition we make sure that all necessary due diligence documentation is in place with regard to financial reports, intellectual property rights, insurance, legal permissions, and contracts with suppliers, partners and clients.
5. Based on the above and an updated business plan, Seedcap creates pitch materials such as an investment memorandum, executive summary and powerpoint presentation aimed at those investors and institutions which we find most appropriate to our client.
6. Pitching and negotiation ensues with the goal of closing the deal in the shortest possible time and to obtain a favorable valuation and good match between our client and the investors. Often what the investor can bring to the table in terms of experience, knowledge, time and contacts are more important than squeezing the last dime out of the valuation.
