Running a Fundraise: Process, Diligence, and Legal Basics
A practical overview of how a first raise actually runs, what investors will ask to see, and the legal care it requires.
With the earlier modules done, you are ready to think about the process of raising money. This module covers the sequence, what to prepare, and where to be careful.
Run it as a process
Raising goes better when it is concentrated into a defined window instead of dragged out over a year. Prepare your materials first, then talk to investors over a period of weeks, keep a simple list of who you have spoken with and what they said, and follow up promptly. Momentum matters: a raise that stalls tends to keep stalling.
Prepare for due diligence
Investors who are serious will ask to see documents. Have these ready in an organised folder: your company formation papers, who owns what (the cap table), agreements assigning intellectual property to the company, key customer contracts, and basic financials. My due diligence checklist shows what an investor typically checks. Finding problems yourself before they do shows maturity.
Choose investors thoughtfully
The wrong investor can be worse than none. Look for people who understand your sector, who have a record of treating founders fairly, and whose expectations about timing and growth match yours. Speak with founders they have backed, including ones whose companies did not succeed.
Take the law seriously
Selling ownership in a company is the sale of a security, and securities laws apply even to small, friendly rounds. Rules often limit who can invest and how you may advertise. Work with a qualified securities or startup attorney before you start speaking to investors, not after.
Your task for this module
Create a folder with your one-page summary, your numbers, your cap table, and your key documents. Write down five investors or advisors you would like to speak with and why each is a fit.
Where to go from here
That completes the series. If you found it useful, send me a question or tell me what topic you would like covered next. I read every message.