The run up to Christmas is one of the most frantic peaks in the fundraising calendar, with both investors and founders wanting to get the paperwork done before the festivities begin.
This is an opportunity to ramp up your fundraising efforts using one of our 3 options:
- Receive a cash injection now using SeedFAST and do a funding round next year
- Close a smaller funding round now, top up using Instant Investment next year
- Raise a 'Bootstrap Round' now if your investors are family or friends
1. Use a SeedFAST to get cash now, hold the round next year
Perhaps your startup just needs a small amount of money to tide you over and you simply don’t have the time to put together a full funding round before Christmas.
That’s why we designed our SeedFAST- a way for one or more investors to put money into your business now, without the need for a full funding round.
This is also an SEIS/EIS friendly agreement, where you don’t set a valuation. Instead, your investors will actually receive the shares when you close your funding round next year.
You can easily create and send out a SeedFAST on our platform in less than 10 minutes and receive the money today.
2. Do a smaller round now, top up using Instant Investment next year
But what if you’ve already opened your round, have investors committed and are looking to close?
For a founder it can often be difficult to decide whether to close a smaller amount now or wait for those final investor commitments to come in - commitments that might take much longer than expected.
That’s why we've pioneered Instant Investment - allowing you to accept new investment into your startup at any time, without the need for a new funding round.
That means that instead of waiting to reach your full initial target - you can close the commitments that you have now, but with a provision that allows you to accept additional “Instant Investment” in the new year.
3. Raise a 'Bootstrap Round'
Closing out the legal paperwork of a fundraise can take up to 3 months due to back-and-forth negotiations with your investors. Professional investors often have a series of terms that they will regularly require to be part of the documentation, which can hold up the investment.
But when raising from friends, family and people you know, they usually won't have many requirements, if at all.
And that’s exactly the reason why we designed our 'Bootstrap Round' - which allows you to quickly and inexpensively accept a small amount of money without creating and negotiating over long form documents that just aren’t needed at this stage in your business.
If you'd like help deciding which strategy is right for your business, hit the chat button to speak to our funding advisers or book a call with a member of the team
Here is another interesting article on how to close before the end of the tax year.
If you are raising this summer, here is how to close before the August holiday season.