Using Data to Support your Fundraising Strategy

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.

Connect with the SBTDC Technology Commercialization Team for guidance on getting access to this resource.

The Angel Capital Association’s Angel Funder Report 2020:

The National Angel Capital Association (ACA) recently published their Angel Funder Report 2020. The report summarizes results of a survey of 79 angel groups across the country.  The data shows current trends in the early-stage financing landscape.  It’s critical to understand what is happening in the market when planning your own equity funding strategy.  Keep in mind that the market of comparable deals in your geography are a major determinate of key factors like valuation, deal structure, and expectations about how much a group may invest.

Some of the data trends in this report include:

  • 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.

It is helpful to view investors as customers of equity.  This report helps you gain valuable insight into your “customer’s” expectations as you plan your own fund-raising strategy.

Review this great ACA publication for free here: https://www.angelcapitalassociation.org/angel-funders-report-2020

Carolina Innovate: Patent Landscaping & Market Research

Make sure your idea is market ready?
Wondering if you’ve got the next great invention?
Is it really novel?
Who would buy it as a product or a service?
What funding opportunities exist that may help get your invention from lab to market?

The service offers custom analytical reports that provide a strategic view of the competitive landscape, current and projected market conditions, as well as opportunities for grants and funding to complete research and launch new products, services and businesses. Services include the following.

  • 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.

Additional information here:

https://innovate.unc.edu/patent-landscaping-and-market-research-service