The Capital Raising Process
If you’ve just submitted your application to raise with Equitise, congratulations! That’s a great step in what could 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.
If you haven’t applied yet, our application process is designed to be quick and easy. All you need to do is head to this link, and enter some basic details. At Equitise, we care about the 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 clear, concise and confident.
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 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's experience, the market, traction to date, your business model and your technology. If you didn’t provide us with a pitch deck in your application because you don’t have one, 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 any number of minor issues. Our analysts will always endeavour to provide a prompt decision, and 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 and provide a strong investment opportunity for our investors. The process often starts with a phone call or in-person meeting to get a more thorough understanding of the business and ask any immediate questions. Our analysts will then 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 experience to determine whether we think the business can conduct a successful raise.. For more information, read our breakdown of this topic.
Step 4: We work together to prepare the offer
If both the analyst team and investment committee agree to proceed with a retail offer we'll arrange a kick-off call for both teams to meet followed by subsequent weekly WIP meetings. As momentum and executing on timings is a big factor to a successful raise we make sure we have all the documentation sited before we even announce the offer. 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. This means that when we do announce the campaign all the behind the scenes work has already been prepared and the raise can run smoothly.
Step 5: We let the crowd decide
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. Sometimes our team might determine that a wholesale or private offering is more suitable for your business than a retail offer. This follows a slightly different process to the remainder of this guide, more information can be found here.
Step 6: The offer goes live
After 2-3 weeks in the expression of interest phase, 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 and kick-start the round. Momentum is key to an equity crowdfund, so having dollars in the bank before it’s communicated more broadly is critical to the success of the offer.
Next, those who have expressed their interest in the previous phase are granted access, with the promise of exclusive early access, and finally the full public campaign launches. 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 for maximum traction.
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 updates with our network.
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. If you have any further questions, check out our educational resources, or contact us.