Frequently Asked Questions (FAQs)
We are looking to raise capital and have already started talking to investors. Should we be working with you?
If you have already reached agreement on a term sheet and completed investor diligence, you should wait until you start thinking about your next round.
However, if you have started talking to investors it is actually a very good time to enroll into our program. You will benefit from an expert point of view on your business plan, a candid assessment of strengths and weaknesses along with introductions to a potentially larger pool of investors. You will also get the benefit of a mock diligence visit and access to templates for a business plan, financial projections and term sheets. All this should increase the chances of striking a good deal.
I just raised a first round and will be looking to raise additional capital in a year from now. Should I sign up?
Congratulations! If you have just raised capital to prove a business plan and/or a product or service, it will be useful to wait till you have reached these proof points. Once you are confident you are reaching a point where you should start planning for a fund-raise, it would be the ideal time to start working together. Remember, closing capital takes longer than you think, don’t wait to the last minute with a short runway.
We have some mentors we work with and we have heard of other programs offering mentoring support. What makes you different?
We are focused on facilitating investment; your mentor will work with you until you have closed funding. Our mentors have years of experience working with small and large businesses and so the advice you will receive is practical and focused. This is a three-year program so your mentor will work with you over a reasonable period of time, really understanding your business and you will benefit from his or her experience.
In addition, the two of you will have access to the tools and templates of GSBI and the clean energy domain knowledge of New Ventures.
I am concerned the engagement with you will consume time and detract me from my business.
Our advice is that if you are looking to raise investment one member of the founding team will have to be dedicated to the process. Our main touch point will be this person. Your mentor will expect to spend an hour with him/her on a call every week or every other week and follow through on work assignments, which are all targeted at getting you investment ready. If you have a senior team member focused on the fund-raising process, you will save time and increase your chances. If you are not able to dedicate a resource to this extremely important task it will be difficult for you to be successful in closing funding, and you will not be accepted into the program.
How long does it take to raise capital?
It takes time. Actually, it takes a long time. You should expect a minimum of six months which can stretch to a year. In our experience entrepreneurs always underestimate the time and effort it takes. Our job is to make you as prepared as possible to approach investors with the goal to reduce the time it “normally” takes.
As a founder, should I be involved or should I get a senior management team member to work with you?
Typically for early stage companies one of the founding team members is deeply involved in fund-raising and interacting with investors. Therefore, we work with founders, with very few exceptions.
What is the discussion that we must have between ourselves in the founding team?
You need to discuss who will be the lead for capital raising, and the roles and responsibilities of other team members during the process. This team member will largely interact with us and investors. We also recommend you discuss your cash flows during the fund raising process (remember it will take double the time you estimate it will take). You will also need to figure out a process on how to address strategic decisions you will be confronted with during this time.
We already have an institutional investor who came in an earlier round. Should we consult them?
You must. Please send them the web links to our program and also encourage them to talk to us.
I am a little worried over confidentiality issues.
Both New Ventures and GSBI have the highest respect for your business and will not share any confidential data with competitors.