Essential capital raising checklist

Written by Snowball Effect · Published on Thu, 8 April 2021

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Are you considering raising capital for your business? But are you unsure where to start, what your options are and what you need to prepare? Then take a look at our checklist below.

Since launching Snowball Effect in 2014, we’ve raised over $90m across more than 80 successful capital raises. We work closely with companies throughout the planning, preparation and capital raise journey, helping them through many of the steps outlined below.

For more information on the different stages of a capital raise, check out this article.

Before you start:

  • Determine how much you need to raise to achieve your business objectives.

  • Next, consider how you want to raise funds. Do you need the help of an online private equity platform like Snowball Effect, or do you have savings or assets you can draw on?

  • If you are considering an online investor platform, look at what your options are. At Snowball Effect, we offer a range of options, including public, private, wholesale, and debt raises, each of which has benefits.

Planning phase:

  • Write a 1-2 page executive summary about your company, why you are raising capital and why investors should back your business.

  • Sort out business processes and systems and ensure your company is running smoothly before potential investors come calling.

  • Know who your competitors are and how your business differs from them.

  • Prepare your Investment Memorandum. This longer document provides more detail on your business, investment proposition and business plan.

  • Prepare financial forecasts and gather together historical financials.

  • Pull together a due diligence folder for serious investors.

  • Finalise a FAQ document of commonly asked questions and answers, so you have it on hand for potential investors.

  • Map out your marketing plan for the capital raise ahead of time.

  • Identify if there are areas of the business you would like additional support in that investors could fill - e.g. are you also looking for an experienced director or board members.

  • Practice your investor pitch ahead of time.

  • Clean up your company’s digital presence and ensure your social media and online profiles are up to date and include the necessary information.

Capital raise phase:

  • Highlight your company’s points of difference and the benefits of investing in your business.

  • Shine a spotlight on your team’s experience, expertise and range of skills.

  • Use your business’ social media and marketing channels to tell customers about the capital raise and how they can invest.

Post capital raise:

  • Put systems in place to keep investors engaged and in the know.

  • Stay on top of investor communications.


Interested in learning more about raising capital for your business? Our team are happy to answer any questions and can be contacted at [email protected] or by calling 0800 SNOWBALL.