How to Choose an Investment Bank for Raising Capital

One truth: Start-ups look for investors. Another truth: management teams will always seek the assistance of an investment bank to maximize capital raise’s efficiency. As a company owner focused on raising capital, you should know about your ideal investors and the amount of capital you’ll need. These fragments of information will always assist you in understanding and explore the capital perspective of your business.

As an entrepreneur looking for venture funding, you should start thinking about these three things. Without wasting a single beat, let’s get started with knowing the real deal now.

You need to be clear and frank about the process

You’re the owner, so investment banks and other parties will expect you to have a thorough understanding of the overall investment banking process. You should give a pretty honest and clear rundown of your business. Just in a nutshell.

If you have a trouble communicating the bank the nitty-gritty of your business, you should hire a capital raiser in NYC or elsewhere. A group of experienced capital raisers will help you convey, to the bankers, all the details about your company and about venture funds.

You have to ensure that the targeted bank understands your business pitch and segment

As bankers will be working on your behalf to seek investments, they should know the way to approach your business and its segment intelligently and knowledgeably. Ideally, these bankers will know a thing or two about closing deals and will know investors intimately.

Likewise, you’ll have to ensure that the bankers should understand your business pitch. For this, you need to provide them a reliable business pitch—something that actually sells. That’s why you should prepare a pretty solid sales pitch that the banker can further use to pitch investors.

Preparing a powerful pitch is easier said than done

This is the last step—you’ll have to prepare a powerful pitch. All you have to do is tobuild a business pitch that actually makes investors believe in whatever you’re selling; it should let them believe in your business idea. That’s why we’ve thought of covering this topic as well.

Preparing a pitch successfully is more about the choice of words you put and the timing. So that’s why it’s first point has to be words. This is followed by two other components—tools and time. So the three elements of a powerful pitch include:

Words: You should use illustrative words that’ll clearly describe what your business does. If you’re up for an elevator pitch, you should use words that are descriptive—and your language needs to be pretty engaging, come what may.

Tools: Visuals in your pitch are pretty important, but they should never overshadow your language or words. You may easily implement Guy Kawasaki, PowerPoint, or the 10-20-30 rule. The choice is completely yours.

Time: You needn’t waste the time of your investors. For this reason, you should get to the point without wasting a single beat. Your pitch has to be pretty sharp, and it should never ever beat around the bush. Remember: You won’t enjoy the luxury of carrying out an expansive explanation.

So here’s where we’ll finish the post. You’ve just read the top three tasks that you should do. If these activities are done successfully, you’ll surely get a step closer to the investor who’ll translate your commercial dreams into a living reality.

At Build The Plan, we take a holistic approach to the growth of our clients’ businesses and organizations. By developing and utilizing a unique business plan process for our clients