How to raise capital when you have never done it before
Investors bet on teams, not on ideas. That sentence is in chapter 2 of this guide, and most first time founders have it the wrong way round. They polish the idea for months and walk into the room with no answer to the question of why this team.
Mastering the Art of Capital Raising is a 15 chapter walk through the whole raise, from the vision you write down before any meeting to the investor update you send after the money has landed. It is written for founders raising their first or second round, from angels through to institutional money.
It treats capital raising as a process with stages, not as a pitch event. Most of the chapters are about what happens before and after the pitch.
What is inside Mastering The Art of Capital Raising
15 chapters in the order a raise actually happens.
- 1, develop a compelling vision
- 2, build a strong team, because investors bet on teams
- 3, validate your market before you ask for money
- 4, craft a compelling pitch that tells a story
- 5, create a solid business plan
- 6, develop a financial model you can defend line by line
- 7, identify the right investors for your stage and sector
- 8, activate your network for warm introductions
- 9, prepare for due diligence on team, market and financials
- 10, build relationships with investors before you need them
- 11, create momentum and urgency
- 12, master the art of negotiation
- 13, close the deal
- 14, manage investor relations after the round
- 15, celebrate wins and learn from losses, because fundraising is a marathon
Who this free guide is for
If you are looking for a list of investors to email, this is not it. Cold lists are the slowest way to raise and the guide says so.
If you have a business that works, a round to raise in the next 12 months, and no idea what due diligence will ask for, this was written for you.
How to use it
Do chapters 1 to 3 before you build a deck. The vision, the team and the market validation are what the deck is made of. Chapter 10 is the one to start earliest, because the relationships take months.
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Questions people ask before downloading
How long does it take to raise capital for a business?
The guide describes it as a marathon rather than a sprint. The chapters on relationships and due diligence assume months of preparation before the round opens, and the closing chapter covers the weeks after a term sheet.
Is this for startups only, or also for established businesses?
The 15 steps apply to any business raising outside money. The financial model, due diligence and negotiation chapters are the same whether the company is 2 years old or 20.
Do I need a financial model before I talk to investors?
Yes. Chapter 6 covers building one that demonstrates you understand your own business. Investors will test it in due diligence, and a model you cannot defend costs credibility you do not get back.
About the author
Andreas Pettersson is the founder of Leaders ADAPT. He built a company from zero to over 150 people, sold it to Canon and became their youngest standalone CEO. He now coaches founders and executives on leading without being the bottleneck. This guide is free, the download arrives by email within a minute, and you can measure where you stand first with the free leadership assessments.