Company Directors who are seeking to raise capital should ensure that the company is “investment ready” before attempting to raise capital. “Investment readiness” applies to a wide number of issues including:
The identification of a product or service that the company is going to provide.
Steps have already been taken to protect the company’s intellectual property by a patent application.
In some cases, this might not be the best move, however the directors should be in a position to explain why they have not sought a patent on their intellectual property.
An initial leadership team should have been assembled with job descriptions.
If a leadership team position has not been filled at the time the company is seeking to raise capital, the identified position should be included in the documentation to be supplied to potential investors, with an indication that the company is still completing the application reviews.
The Business Plan that incorporates the vision of the leadership team and articulates the vision for the next 3 – 5 years incorporating comments on:
The Directors need to have an idea on who the potential investors might be and have prepared suitable documentation to be handed to those potential investors.