Essential Documents Every Startup Needs for Fundraising
Raising funds isn’t just about having a great idea; it’s about demonstrating readiness, clarity, and value to investors.
At Katrela Ventures, we have put together the "𝗦𝗠𝗔𝗥𝗧-𝗖𝗔𝗣" checklist, that showcase startup’s growth potential, stability, and vision. Having these key documents ready before you’re asked for them speeds up fundraising, builds credibility, and sets you apart.
Here’s what "𝗦𝗠𝗔𝗥𝗧-𝗖𝗔𝗣" stands for:
𝐒 - Strategic Pitch Deck:
Your 10-15 slide story that covers your problem, solution, business model, traction, market, and team.
𝑻𝒊𝒑: Keep it clear and visually engaging; include financial projections and future growth plans.
𝐌 - Model for Financials:
A 3-5 year financial forecast that includes revenue, cash flow, costs, and profitability assumptions.
𝑻𝒊𝒑: Ensure your assumptions are realistic and supported by data; investors will scrutinize these projections closely.
𝐀 - Analysis of Market and Customers:
Comprehensive market research to back up your claims of demand, customer pain points, value addition, competition, and unique advantage.
𝑻𝒊𝒑: Include metrics that show customer interest, retention, and engagement—data-driven insights stand out to investors.
𝐑 - Roadmap and Business Plan:
A detailed guide to your business's growth strategy, covering your market analysis, revenue model, go-to-market strategy, and scalability.
𝑻𝒊𝒑: Having a strong business plan shows long-term vision and attracts serious investors
𝐓 – Team Members:
Highlight the expertise of your team members and show how your team structure supports your growth plans.
𝑻𝒊𝒑: Emphasize relevant experience and achievements.
𝐂 - Cap Table:
A breakdown of your ownership structure showing founders, investors, and option pools.
𝑻𝒊𝒑: Keep it up-to-date and transparent.
𝐀 – Agreements and Documents:
Key contracts and LOIs, corporate structure, past investor agreements, IP assignments, and any other relevant legal documents.
𝑻𝒊𝒑: Organize these into a virtual data room to make it easy for investors to access and review.
𝐏 - Proof of Traction:
Key metrics that validate your growth, such as user numbers, revenue, retention rates, etc.
𝑻𝒊𝒑: Share metrics that showcase momentum and provide insights into potential scalability.
𝑬𝒙𝒕𝒓𝒂 𝑻𝒊𝒑𝒔:
Be ready to show a demo or walkthrough of your product.
Organize these documents in a secure data room for easy sharing during deal evaluation and due diligence—it’s a simple step that can make a huge difference.
Fundraising success lies in showing investors that you’re prepared, thoughtful, and ready to scale. We specialize in helping startups become investment ready and ensuring all the "SMART-CAP" essentials are in place.
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