The Capital Raising Process
If you’ve just submitted your application to raise with Equitise, congratulations! That’s the first big step in what could potentially be a very rewarding and beneficial stage in growing your company. Here we’ll discuss the next steps in our process so you have a better idea of what to expect in the coming days.
Step 0: You haven’t applied yet
If this doesn’t apply to you, feel free to skip to Step 1. Our application process is designed to be quick and easy. All you need to do is head to this link, enter some basic details. At Equitise, we care about the real underlying fundamentals behind a business, so don’t spend too much time sprucing up a flashy document. The best business pitches are the ones that are able to say the least.
Step 1: We review your application
Our analyst team reviews every single application that comes in, and equally responds to every single business. It’s important to keep in mind that we can only review what you send us, and given the high volume of applications we receive, we often can’t afford to spend time going back and forth for just the basic information. If there’s anything you think could help us in our decision making, include it! At a high level, we assess your team, traction to date, the market, your business model and your technology. If you didn’t provide us with a pitch deck in your application, don’t stress, our analysts will get in touch with you to grab what they need.
Step 2: We make an initial decision
For some, equity crowdfunding might not be the right fit. There are so many reasons this might be the case and can often be down to timing, suitability or any number of minor issues. Our analysts will always endeavour to provide a prompt decision with If we think your company is a good fit, we’ll move on to due diligence.
Step 3: We conduct due diligence
At Equitise, we have a very high standard of due diligence over and above the level imposed by our regulatory authorities. We do this to ensure you have the best chance at raising the capital you need. The process often starts with a phone call or in-person meeting. Our analyst team will progress through additional levels of due diligence, conducting market research, verifying contracts, assessing legal agreements and so on. Our diverse team comes from a range of backgrounds from investment banking to corporate advisory and venture capital and will draw on this to determine whether we think the business can conduct a successful raise, and provide a strong investment opportunity. For more information, read our breakdown of this topic.
Step 4: We let the crowd decide
If both the analyst team and investment committee agree to proceed with a retail offer, the next step is to let the crowd decide. After all, these are the people who could actually be investing in your company. Sometimes our team might determine that a wholesale offering is more suitable for your business, which follows a slightly different process to the remainder of this guide. The next step for potential retail offers is to run an expression of interest campaign (EOI) which will allow people (your network and ours) to register their interest in the offer. This requires you to market the offer, driving traffic to a landing page we will set up on the Equitise platform. It gives you and us a strong indication of whether there will be enough backing by the crowd for a successful equity crowdfund.
Step 5: We work together to prepare the offer
If the expressions of interest campaign went well, we begin our preparations phase. We’ll sign an engagement letter and conduct an initial kick-off meeting with our teams, followed by subsequent weekly WIP meetings. Our team will work together with yours to draft, iterate and complete the Offer Document and create the offer page video. The offer page, where people invest, is constructed on the Equitise platform, and our marketing team works with yours to conduct pre-marketing to generate EOIs.
Step 6: The offer goes live
After a few weeks, the offer launches on the Equitise platform to a private audience. This is generally limited to your close network of friends, family, business connections and existing investors, to allow them time to make their investments. Next, EOIs are granted access, with the ability to invest early, finally followed by the full public launch. At this point, marketing efforts by both teams are really ramped up, and we’ll generally time press releases with media partners to coincide too.
Step 7: Success (hopefully)!
Once your offer hits its minimum raise amount, it’s officially successful. From there, it will enter a period of overfunding until it either hits its maximum raise amount, or the offer period expires. Either way, the offer then closes successfully, shares are issued and funds are transferred. Congratulations!
Step 8: We stay in touch
We treasure the relationships we build with the amazing entrepreneurs we work with. We’ll keep in touch to help you along your business journey and love sharing any exciting business updates on your end with our network and media partners. It’s important that you also stay in touch with your new investors, providing regular company updates and keeping them in the loop. Remember, these stakeholders can provide a huge amount of value to the business as advocates, advisors and customers, so don’t waste them!
We’re excited to learn more about your business and potentially work together. If you have any further questions, check out our educational resources here, or drop us a line here.