„Whenever you can avoid fundraising.“

Most of the time, it is preferable to start without external financing as it pushes you to keep your costs low and generate revenues quicker.

Entrepreneurs are often faced with this trade-off: Should I spend my time on product development and customer acquisition or should I spend my time raising external financing which helps me to accelerate product development and customer acquisition?

Please be aware that financing usually takes 6-12 months and can also fail. Even if it is successful, it does not mean you can accelerate product development and customer acquisition immediately. 

To achieve this, you have to interview, hire, train and if necessary dismiss employees, implement structures and processes, manage investors, etc. As a result, first, you are busy with raising money, then you are busy with spending money, which keeps you away from product development and customer acquisition.

In short, it is often advisable to get as far as possible without external financing and to focus on product development and customer acquisition, i.e. on the actual performance of the company. Ultimately, the (paying) customer is always the best investor.

Signavio and Celonis, two of the most successful German software start-ups, have done precisely this and only brought in external investors after five years, but then with sums in the double-digit millions.

In many cases, external financing may be necessary to develop a product, finance market entrance and further growth, and capture the markets quickly. Here we can support you as we have been involved in financings, starting from as low as €100,000 and going up to €170 million.

In particular, we can support you with the following:

Module I
Investor Readiness Audit

  • Do you have a strong “Reason why”?
  • Does the markt potential permit the establishment of a unicorn?
  • Do you and your team have the willingness and capability to realise the potential?
  • Traction: What have you reached so far?
  • Are your Unit Economics attractive?
  • Do you have a clear roadmap?

Module II

  • Financial plan: Development of a structured, simple but professional financial plan
  • Fundraising strategy: Development of your fundraising strategy
  • Creation of a strong and compelling Equity Story
  • Documents: Preparing of your Elevator Pitch, Summary, Teaser Deck, Long Deck, FAQ, White Papers etc.
  • Pitch training
  • Data room: Implementing a clearly structured and professional data room

Module III

  Seed to Series B (€500,000 – 20 million)

  • Contacting investors
  • Meetings
  • Pre-Due Diligence
  • Term Sheet
  • Due Diligence
  • Contract negotiations and closing
  • Investor relations