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Four steps to fundraising on VC4A

 Fundraising - CC Hub by Samuel Okocha

If you have a venture profile registered on VC4A you have the ability to raise capital. Otherwise you can register a venture profile in four simple steps. No hidden fees. No hidden costs. Any and all leads go directly to you.

Here is an overview of how to prepare yourself for a fundraising campaign, the next step needed to connect your startup venture with the VC4A Investor Network.

1

Prepare your venture

Before your venture is put into fundraising mode, it is required to:

  1. Add previous funding rounds
  2. Upload documents such as a business plan and financial projections
    Documents on the fundraising part of your venture profile give investors an opportunity to do a first assessment of your business. Before a fundraising request is approved, you need to upload a copy of your Chamber of Commerce registration or certificate of incorporation, a business plan and sound financial projections. Only investors registered as part of the VC4A Investor Network can access these documents.
  3. Complete the ‘Summary plan’, a short version of your business plan
  4. Fill in the Quickscan, 40 questions you can only answer with ‘yes’ or ‘no’
  5. Add team members to the venture profile
  6. Register your intention > amount, type and stage of finance

TIP!

To improve your chances, add Letters of Intent from strategic partners, or contracts with existing customers, etc. Add relevant media that helps to give an impression of the company and team.

Also make sure to add team members and advisors to your team page and complete the Quick Scan. These parts of your profile help investors see who is part of your team and understand how far you are in building the business. Some investors back early stage companies while others focus on growth stage. These tools improve your chances of meeting the right investors.

2

Register your intention

After preparing your venture profile, the next step is to indicate that you want to raise a round of funding. On your venture profile you’ll find a heading “Start Fundraising”. Under this heading, you will only be able to continue when you have completed all the required steps. Now you need to indicate the financing stage – Seed, Start-up, 1st round (Series A), 2nd round (Working cap), 3rd round (Mezzanine) and 4th round (Bridge). You also need to indicate the financing type – Equity, Debt or Hybrid and your capital needs (between USD $10,000 and USD $2 million).

After this is submitted, your registered intention is reviewed by the VC4A team. Once approved, your venture is added to the list of ventures fundraising on VC4A. The next step is to garner investor interest and secure a lead investor. Post updates about your progress to your venture profile showing you are on your way to achieve the milestones indicated in your documentation. Investors who are interested in your work can express their interest to join as a possible (lead) investor.

3

Raising Capital: Engage potential investors

The more traction you will be able to attract around your venture profile, the more likely it becomes to secure interest from a number of possible investors. You can engage them and work to understand the differences between different investors. It’s up to you to decide who is the best option for your business and agree to a fair term sheet. Do not approve the investor until you feel confident about the terms of the deal they are offering.

4

Closing the deal

When you have secured interest from one or more investors it is time to close the deal. Once completed, the venture is put back into building mode. Update your network on progress and make sure you maintain the foundations needed to raise additional capital in the future!

If at any point you want to cancel your participation, let us know and we will pull the venture out of fundraising mode. You can also see our Terms & Conditions and Disclaimer for additional detail.