Early Stage Funding
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Getting funded is an intricate and time-consuming process and we work with a particular focus of easing the entire process. Raising capital through external funding is of various types depending upon the at which stage the business is, which sector it belongs to, the interest level of investors, etc. and the investee and investor are to align on the right model. The external funding options are angel investment, private equity, angel fund, micro VCs and VCs. As the business evolves and becomes increasingly mature, it advances through these funding rounds; however, the path for each venture is somewhat different, as is the timeline for funding. Similarly, each funding rounds has its own documentation and processes.
At Lexhive, we syndicate investors and entrepreneurs, coordinate the funding process and follow-up on requisite documentation enabling timely inflow of capital.
We enable access to Seed & Series A Funding to start-ups & early stage ventures through our network of multiple angel investors & investment groups. Though a key service of us, the same is done selectively after much vetting and preliminary investigation at our end. A venture begins with a seed round and continues with multiple Series of funding rounds as it matures. And normally, networks fund up to two/three rounds after which big players come into picture with a good exit for the early stage investors and we work for early or growth stages.
Investor pitch-deck is the first and foremost step in external fund-raising process. Precise number of slides, well-researched and accurate data with adequate back-up, compelling story, flawless market analysis, appealing content, consistent design and graphics, simple and realistic financials and smart language are some of the basics of a resounding pitch deck. We will assist you in crafting a thorough and strong pitch deck with all the ingredients required for an engaging presentation.
This is a detailed investigation a potential investor carries out on a target business and is the most important component in the investment process with a profound impact in the funding decision. It involves evaluating the business, financial and legal aspects of the opportunity and the investor will use the outcome to finalize the internal approval and complete the investment. We coordinate with you and your investor or their representative in navigating the nuances of the due-diligence process. We further assist you in closing the conditions precedent and conditions subsequent mentioned in the final report.
This is yet another crucial element in the investing process and culminates in the initial step of issuing 'Term Sheet' a non-binding document that contains the terms and conditions. Understanding the constituents of a term sheet is crucial for effective negotiation and right structuring of the deal. And it is the base document for 'Share Subscription and Shareholder Agreement' which is legal binding document for the deal. However, the same will be confusing for most entrepreneurs. Some of the major aspects are valuation, board structure, liquidation preference and founder vesting. With investors having sound knowledge, the negotiations will be a routine affair for them. We help you understand your priorities and be confident during negotiations, thereby, structuring a win-win deal.
Valuation & Cap Table
The valuation of a venture refers to its net economic worth and is done before every funding round. While most entrepreneurs spend large amounts of time and energy in negotiating higher prices per share, it may not always be advisable to do so. Accepting lower prices may be better in some cases as it could mean more flexibility. Yet another consideration is how the current valuation will affect your ability to raise capital through future funding rounds. If the valuation is extraordinarily high, there is a possibility that future investors would want to reset the valuation to a lower level, affecting the entrepreneurs severely. We ensure a right valuation and cap table suiting your funding size and future funding plans.
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