In a data driven world it only makes since to tap into the available resources as you plan your next equity capital raise. This article is intended to help you identify great resources and how to utilize them as you prepare to raise capital.
The PitchBook database:PitchBook is an outstanding database used by entrepreneurs and investors alike. They offer a searchable database of company profiles with a vast amount of information about businesses including fund raising activity, mergers and acquisitions, IPO, and in some cases even company financials and valuations. The database also includes profiles of investment groups and lists all of their investing activity with transaction details. Value to you of using this database:
- Create a target lists of investors that have invested in similar companies at a similar stage.
- Look for comparable companies that have been acquired to inform your exit strategy.
- Get a deeper dive investigation into M&A activity can help determine terminal value and revenue multiples of comparable companies.
- Having this data can help you build credible pro forma financials with assumptions about the potential value of your own company in the future when you are acquired.
- Angels invest mainly in Seed and Series A deals
- Most angels participate in $1M-$3M funding rounds
- The median valuation of Seed rounds in the South East was $6M
- Only 24% of deals were reported as pre-revenue
- The negative impact of COVID19 on investing activity has improved nationally. Valuations are stable and investors do continue to invest proportionally more in current portfolio companies.
- Patent landscaping (aka, patent mapping). Strategic view of the patent landscape for technical development path and portfolio planning; citation family analysis; and potential licensee identification.
- Market/industry research. Market/industry opportunity assessment, including market size and existing commercial landscape; and competitive intelligence on potential licensees, partners and competitors.
- Grant/funding opportunity research: Identification of grant/funding opportunities from federal and state agencies as well as private foundations.