- Are you a start-up or an MSME?
- Are you looking to raise funds for your business?
- Are you aware of the steps and procedures involved for raising debt and equity?
the fundraising process
How can India Company Incorporation help you?
Debt
- We can help you in structuring the debt, preparing a bankable proposal comprising of the IM and the CMA data/financial projections so that you can approach your bank.
- i. Information Memorandum (IM)
- It is the first document which is to be submitted to bankers.
- It covers basic details such as the background of the business and the management, the industry, the financial metrics, the proposed loan structure, security details, the justification for the loan, etc.
- An IM covers all the preliminary information which is required by bankers for assessing whether they can look at a loan proposal.
- The IM has to be crisp, accurate as well as should highlight the relevant points to attract a bank’s business and credit team.
- ii. CMA / Financial Projections
- It is the most important file for getting any loan.
- It refers to the future financials of the business for the tenure of the loan (balance sheet and profit and loss account for the next few years).
- It requires detailed calculations and estimations and the same is required in a particular format which is established amongst the banking fraternity.
- Every number mentioned needs to have a basis and an explanation.
Equity
- i. Teaser
- It is the first document submitted to potential investors and is intended to generate interest in the investment’s target market
- It contains the major highlights and overview of the deal contours, background of the business, industry, strengths of the company, etc
- The teaser has to be short and has to have the potential to positively influence the investor to dive deeper into the company.
- ii. Pitch Deck
- A pitch deck is a brief presentation that gives potential investors an overview of the business, industry, products, growth traction, strengths of the company, financial projections, investment highlights, etc
- It is the most important file for getting investors onboard since this communicates everything about the company including future ideas to potential investors
- The goal of the pitch deck is to secure a meeting / discussion with the potential investor since a good informative pitch deck is the first rung on the ladder.
- iii. Financial Model / Financial Forecast Model
- It refers to the past, current and future financials of the business for a foreseeable duration (balance sheet and profit and loss account for the next five years)
- It requires detailed calculations and estimations basis the business of the company and the future growth potential with the potential funding from the investors
- It provides potential investors with reasonable foresight as to what their investment will be used for in the business and where will the company reach using the funds
- It is an extremely detailed document since this forms the basis of the investment and valuation of the company