Ready, Set, Go! What you need to know about raising capital. Part 5: Post Raise Reality!
What’s Inside?
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Welcome back to our final article in our what you need to know about raising capital series! In case you missed the others, check out parts one, two, three and four which take you through the whole process of raising capital up to now – the post raise phase!
The investment funds have been banked, you’ve had a little celebration to recognise the effort that’s gone in, and now reality bites – it’s time to deliver on what you promised!
Remember, Standard Ledger acts as fractional CFO for numerous startups, and we have helped clients raise more than $40m in the last 5 years, so as always, if we can help let us know!
1. Growing the team
A major reason for raising in the first place is to fund team growth across all functions. Increasing sales & marketing (for the growth you’re aiming at), upsizing delivery customer success (to make sure you keep clients happy), and building sales and finance ops (to stay on top of everything) are important now. For example when we’ve been acting as a fractional CFO for a startup this is often where we’ll help to hire our permanent ongoing replacement – it’s a great milestone which we celebrate.
Sourcing applicants, managing the recruitment process and employee onboarding takes a LOT of effort. You want to hire the right people, assimilate them into the culture, and make them happy and effective as quickly as possible. So if you’re not quite ready for wearing yet another ‘hat’ being the People and Culture Manager, then it’s worth looking at technology solutions like Rippling and Employment Hero, as well as using outside HR consultants to take some of the load off.
2. Improving reporting
With new shareholders on the cap table and in your board meetings, you’ll want to check the format of the meetings and the information that’s shared – you know, all that ‘stuff’ you were going to tidy up some day.
Post series A, many startups move towards a longer quarterly board meeting to make time for in depth strategic discussions, and more succinct 1 hour monthly catch ups. Check out visible.vc for templates and a ton of ideas on how to build your own reporting.
Essentials to include in your reporting:
- Cash and runway (notwithstanding the fact that you’ve just raised)
- Core financials (revenue/expenses and gross/net burn)
- Key metrics (incl ARR, net revenue retention, and CAC)
- Sales/pipeline information (overall metrics/specific deals if appropriate)
- People and hiring
- Product updates
Make sure you keep this updated and correct to stay on top of the work right from the start.
3. Expanding overseas
Time to take flight? Another reason for raising capital is often to fund the push into a new location – with many Aussie startups looking abroad for expansion opportunities.
As well as understanding the opportunities of the markets you’re looking into, there’s also lots of finance, tax, operations and product considerations before you commit to the move.
Here’s some bite size articles for easy digestion!
Along with these check out our resources page for much more information on the exciting world of going global, as well as our free Expanding to the UK downloadable guide.
4. Always be raising
Phew – it’s definitely a lot of work! As soon as you catch your breath from the mammoth effort of the last raise, it’s time to implement everything above that you need to do, AND you’ll then need to turn your mind to the next raise (head back to article one for a refresher to start the journey again!)
The main thing is to understand how the next stage investors think – what story, stage and supporting metrics matter to them – and start measuring, reporting and discussing them regularly so you’re ready to present these as part of your next raise. And of course, start to identify, track and connect with those investors sharing your continued success along the way.
What’s next?
Execute on the plan, then get back into that routine and stay on top of things – you’ll thank yourself for being efficient when the next raise comes around! Make it your new normal, as you’ll never regret being organised and ready to go when you need to.
At Standard Ledger, we understand the challenges and opportunities that come with raising capital for startups and innovative companies. Our team of experienced professionals is here to support you every step of the way, providing strategic financial advice and guidance to help you achieve your growth objectives. Get in touch with us today to learn how we can be your partners in growth.
Thanks for joining us throughout our Ready, Set, Go! series, we hope the info has helped you to get where you need to be and set you up for further successful raises!
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