A: WHILE THERE IS NO SILVER BULLET to successful financial fundraising, there are three general keys to successful fundraising that may help:
- Develop a comprehensive, flexible operating plan. Translate the plan into a financial plan. Communicate the plan and milestones internally and externally (be aggressive internally and conservative to outside parties).
- Develop financing optionality. Do not limit your financing to the “home run.” Include equity, government incentives (U.S. and worldwide), debt, leasing, etc.
- While raising money for the current round, think of the future. Many think you start the next round as soon as you finish the current round. You are really starting the next round while pitching each investor. Look at many turndowns as opportunities for the next round — selectively stay in touch.
Richard is a pharmaceutical and medical device executive and board member with 30+ years’ experience. He has completed multiple IPOs, financings, acquisitions, and sales of companies in excess of $2 billion.