Below is a link to a popular article Lantern Advisors posted with CFO.com. It is most relevant to entrepreneurs and CFOs of high growth companies that have already achieved some level of success and are considering a capital raise as part of an effort to substantially grow the value of their business (and equity.) For example, this is highly relevant to any profitable, $10 million revenue business that has the potential (with additional capital) to reach or exceed $100 million in revenue.
This article address the key components contributing to a successful capital raise, such as a quality business plan, understanding of financing alternatives and how creating competition between potential investors can improve the pricing and terms of a financing and how much an impact that can have on the equity value to the owners and managers of the company.
As identified in the abstract, the article was written specifically for CFOs of private companies but entrepreneurs and business owners can find it helpful too.
This paper has consistently been one of the CFO.com’s top 10 downloads on CFO.com (out of over 900), since it was first posted in July 2008.