FUNDRAISING READINESS
Fundraising Readiness is about preliminary detailed studies that are crucial for successfully executing and concluding fundraising endeavours.
In addition to Fundraising Advisory consultation services, before embarking on a fundraising initiative through investor introductions and pitches, you may choose to leverage the expertise of Fairval experts for in-depth analytical studies.
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These studies are crucial for successfully executing and concluding fundraising endeavours.
Fairval offers comprehensive studies in areas where vulnerabilities are often identified during pitch sessions and investor due diligence meetings. Depending on your needs and preferences, you can opt for individual studies or the entire suite of offerings.
Once you send a “booking” order for any of these services via email at info@fairval.com or by pressing on “book here” links below, we will set up a quick call with you to further scope your needs and to then size our efforts to propose an initial quote.
Market Insight Ringfencing
Frequently, project sponsors from established enterprises or startup founders pursue fundraising without a deep understanding of their target market’s structure, competition, and growth dynamics. It’s common to hear statements like, “we have no competitors,” or to notice a lack of comprehension about the genuine factors that influence market growth and the real barriers to entry or expansion.
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At any project stage, the ability to precisely identify and describe the true competitors and growth drivers of a target market is crucial for meaningful engagement with investors. Indeed, profound market insight is essential for fundraising, as it not only showcases a project’s potential but also highlights its pace of growth, translating into capital requirements. For instance, in a hyper-competitive market where the « winner takes all », rapid growth can be vital for survival and optimizing investors’ returns on investment. Furthermore, thorough market analysis is key for crafting realistic exit strategies, a primary consideration for investors.
Leveraging industry knowledge, financial expertise, and robust analytical skills, our Fairval experts can provide accurate strategic and executive evaluations. These evaluations succinctly illustrate why and how your project or solution can stand out and potentially outperform competitors, if that is indeed the situation.
Financial Modelling
Presenting a realistic financial plan grounded in pertinent assumptions is often a challenge observed in fundraising initiatives. On the revenue front, growth drivers and revenue model assumptions can be ambiguous, untested, or plainly over-optimistic. Regarding expenses, cost estimates are sometimes either underestimated or overestimated in relation to revenue potential, and the underlying assumptions may be off the mark or incomplete.
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This paints an inconsistent financial representation of your project, diminishing its credibility. Drawing on our experience and insights into investor perspectives and evaluation methods, we can assist you in crafting a more convincing financial plan. Additionally, we’ll steer you towards the essential metrics to emphasize in your pitch deck and prospective due diligence sessions. If this service meets your needs
Valuation Modelling
Over the past few decades, we’ve witnessed exorbitant valuations for certain start-ups. This phenomenon has sometimes culminated in financial bubbles, leading to significant losses for start-up founders and their investors. This underscores the point that conducting a robust valuation assessment isn’t merely a theoretical exercise; it’s the bedrock of a solid fundraising transaction.
When it comes to equity fundraising, it’s not uncommon for start-up founders to defer valuation discussions with investors by securing funds through SAFEs or similar instruments. However, this approach doesn’t entirely sidestep the inevitable valuation conversation. While it may be challenging to appraise a start-up in its nascent stages, as the venture progresses, the valuation becomes an inescapable facet of the fundraising process. A thorough valuation is pivotal when negotiating a fundraising transaction. It not only helps in curbing dilution in present and future fundraising rounds but also serves as an essential benchmark to prevent inflated valuations. Overestimations can result in down rounds if projected growth plans don’t materialize.
For debt fundraising, re-assessing the value of existing tangible and/or intangible assets can be pertinent. This revaluation can augment the ability to accrue debt. Thus, a meticulously crafted and dependable valuation study is essential, especially when legitimizing an equity re-valuation via asset re-valuation.
Leveraging its comprehensive industry and financial expertise, Fairval can assist you in deriving a credible valuation for your venture or innovation projects and assets. We offer a valuation model rooted in a minimum of three distinct methods tailored to your project’s unique circumstances.
For instance, we might employ methods from a patrimonial perspective (like those based on net book values and their variations), a comparative stance (such as comparing similar companies or transactions), and an actuarial viewpoint (utilizing Discounted Cash Flow techniques, LBO strategies, and more).
Additionally, we can enhance our evaluations using specialized techniques, particularly when assessing the worth of intangible assets like brands, software IP, or unique advantages attributable to founders or teams.
As an added feature, we can also provide Real-option valuation modelling. This creates a “what-if” valuation framework grounded in real option theory and game theory. This method augments conventional valuation approaches by establishing a phased investment strategy, encouraging ambitious expansion projects while adeptly managing associated risks. It’s especially apt for innovation ventures adopting a simultaneous agile exploration method.
Funding Strategy Mix
The Fundraising Strategy Mix establishes a framework for funding decisions throughout your entire fundraising strategy, aiming to optimize returns for primary stakeholders while ensuring capital efficiency. This structured approach enhances the credibility of projects’ feasibility and viability across different fundraising stages. As a result, a well-structured fundraising strategy appeals to discerning private and public investors.
Your funding strategy mix will differ based on whether you are a start-up, a mature SME, or a large enterprise. For start-ups, the approach will naturally vary among pre-revenue, post-revenue, pre-profit, and post-profit stages.
Similarly, the nature of the asset investments you seek to finance, and the location of your operations will influence your funding strategy. For instance, financing mechanisms may differ for tangible assets versus intangible assets (like software). Likewise, there’s a distinction between the financing of asset investments and working capital.
Furthermore, local, or national tax regimes and associated investment market structures can affect the financial solutions available in different regions.
In this module, we conduct a comprehensive assessment of your specific growth investment project. From this, we can craft an all-encompassing fundraising strategy for a specific financing round or across multiple anticipated rounds.
Given your financial maturity stage, business type, and location, we identify and evaluate a tailored mix of financing solutions, such as:
- Equity fundraising from sources like business angels, angel syndicates, venture capital entities, corporate venture units, family offices, and crowdfunding platforms. This includes formats like SAFEs, preferential equity terms, and convertible notes.
- Debt loans and guarantees from entities like public/private investment banks, venture debt providers, alternative working capital loan sources, and crowdfunding platforms.
- Grants sourced from local, national, European, regional, or industry-specific funds.
By integrating these financial solutions, we align your business plan with a realistic financing lifecycle. Subsequently, we prioritize potential financing mix options, balancing factors like the amount to raise, cost of capital, equity dilution risk, and the benefits of strategic investment.
If our offerings resonate with your needs, please Book Here.
Feel free to send us an email at info@fairval.com or fill in our service information request form here.
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info@fairval.com
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Fairval – Head Office
6 Rue du Revely, 06600, Antibes
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