Fundraising is like selling – it only counts when you close the deal. A successful investor pitch is only a small part of the process. The real work is in getting the investors to agree to the investment terms (the negotiation) and wire you the money (the close).
In the last part of this four part series we discuss the most common way to put together a round of investment from multiple funders. You’ll learn why it’s important to have a lead investor in the mix and how to incrementally get financial commitments from investors to get other investors to commit as well, a process called soft circle.
We also talk through the due diligence process the investor will go through if they’re interested in giving you money and the most common pitfalls for first time fundraisers around the actual terms of the investment. We close the conversation by highlighting some ways that you can create urgency to close the deal faster.