Issuer Process
FUNDSITION was developed to reduce the challenges and streamline the capital raising process for companies, while providing access to a wider investor community that may see your growth as an investment opportunity.
By centralizing the process with an integrated platform, we streamline the steps for issuers and investors, allowing the entire undertaking to flow more efficiently, and allowing you to get on with business.
We have a thorough vetting and curation process in place to avoid the pitfalls for our investors and issuers. These processes serve a critical purpose to ensure companies raising capital on the platform are qualified opportunities that are worth getting excited about.
There are no guarantees to success, because raising capital is hard. But our fundamental goal at FUNDSITION, is to provide every suitable business the best opportunity to be prepared, and that’s nine-tenths of the challenge.
So, what sorts of companies are a fit for FUNDSITION?
We work with companies:
- Where progress has been made past early stages of development and the business is firmly positioned for growth and is seeking external investment, think series A, B & C etc.
- That have a professional management team with integrity, experience and proven ability to execute
- Where the business model timing is ripe for expansion
What types of capital can I raise on FUNDSITION?
We work with companies that are raising capital using:
- Preferred Equity
- Common Equity
For priced rounds (equity) you will need to provide us with your pre-money valuation.
How to raise funds on FUNDSITION
Learn about equity funding and how to raise “growth” capital on FUNDSITION:
Step 1:
Sign up and join FUNDSITION
Simply provide some details to become a member of the platform.
Step 2:
Create Your Application
Your initial application will provide some basic information about your company and proposed funding round so that we can assess whether you would be a good fit for the FUNDSITION platform. This information is used by our Investment Committee who will assess your application and decide whether or not to proceed with the next step.
We want to ensure there is no cost to you in this early stage, only your time to prepare the information we require.
The following information is required to complete the application:
- Basic Company details
- Problem you are solving for, vision and business model
- Market size and timing
- The team
- Some basic financials and information about prior financing sources
- Growth strategy and funding information
- Pitch deck and other key investor materials which summarize the company’s business
What funding information will you need to provide?
You will need to fill in:
- Total round size and how much you already have committed from potential investors
The application form is at the bottom of this page.
Step 3:
Investment Committee
Your application will go through an initial screening by our team to ensure that your company and fund-raising terms are a fit for FUNDSITION. During this process, we will connect with your management team to discuss any additional items required.
Subject to the discovery process, your raise will progress to the next step.
Additional Information we may require:
- Classification of key team members, the business, products or services and the market and industry.
- Business traction and milestones
- Fundraising details (past and present)
- Additional materials required to support the statements made in the application
Screening Criteria
The investment committee will consider your company’s value proposition, the problems you are solving, your competitive advantages, your team, potential market size, competition and traction among other factors. We then dive into the financial aspects of your company and conduct an initial ‘financial workup’ to have an understanding around the economics of your business model, cash runway and the assumptions around your forecasts.
What we review with the Financial analysis:
- Profit Margin Analysis
- Revenue Efficiency
- Infrastructure Costs
- Working Capital Management
- Cash Conversion
- Capital Structure
- Review Financial Forecasts
Upon approval your company will then progress through the remainder of the fund raise process.
Step 4:
Due Diligence
For Regulation D (506c) raises
FUNDSITION together with Stax Capital (licensed broker dealer) conducts an in-depth due diligence on the business, the team, product or service, market and other key investment factors. At this point, there will be costs incurred for the due diligence process, this will be discussed with.
Business Due Diligence
Our internal team conduct an in-depth review and analysis of the business, team, product and or its services, the market and other key investment factors.
Legal Due Diligence
We have partnered with a third-party provider to conduct legal due diligence with reviewing and verifying the standing of your company and its key people. The FUNDSITION team will provide you with a questionnaire to complete.
Step 5:
Pre-launch
Once the due diligence process is complete and we have developed a deep understanding of your business, together, we can create a narrative that will best articulate your value proposition in the form of investor collateral and a campaign.
We have key providers in our network that can help you draft your Private Placement Memorandum (PPM), which is the most important document that you need. Of course, there will be a cost incurred with producing the PPM.
Our focus is to make sure that you are well prepared with all of your Offer documentation to meet all of the regulations that the SEC requires, plus responsibilities with Corporate governance, shareholder communications and driving shareholder value.
We will customize a profile on FUNDSITION with information about your company that will be presented to investors. You may also wish to create other promotional materials such as a campaign video, articles and email communications to your database. You must follow and comply with the general solicitation rules under 506 (c) to avoid triggering any punitive action from the SEC.
What is pre-launch onboarding?
We will onboard your fundraising campaign and help set up the online offering. This includes, setup of investment agreements, establishment of escrows and entities appropriate to the agreed upon structure of the online raise and identifying the recipient of the funds post-close.
How can I market my funding round?
As you build and optimize your FUNDSITION profile, we will work with you and your legal counsel to help you understand marketing best practices and how to best promote an online raise based on your offering and particular needs. A critical component is helping you understand how to stay compliant with the current regulatory environment and put your best foot forward to investors.
Step 6:
Launch and Close your round
As your campaign comes to an end, we will work with you to complete the final legal documentation and transfer the funds to your nominated bank account. Issuers are charged a placement fee upon successful completion of the raise.
