M&A What is an investment fundraiser and who does it?

Investment fundraising is a process that allows companies and startups to obtain the capital necessary to develop, scale their operations, and reach the next level of growth. What exactly does it involve, what are the steps involved, and who is the specialist responsible for negotiating with investors?

In short:

• Investment fundraising is the process of raising capital from venture capital funds, business angels, and industry investors to develop a company or project.
• The fundraiser is responsible for preparing the financing strategy, pitch deck, outreach to investors and conducting negotiations.
• The fundraising process includes analysis of capital needs, preparation of materials, contact with investors, meetings, Due Diligence and finalization of the round.
• The VDR tool supports the fundraising process by enabling secure document sharing with investors and accelerating the Due Diligence stage

Investment fundraising is the process of obtaining financing from investors, venture capital funds, business angels, financial institutions or strategic partners in order to develop a company, scale projects, implement new products or implement innovative ventures.

In practice, fundraising is the process in which an organization prepares a capital raising strategy, builds relationships with potential investors, presents its project, and determines the terms of financing.

Its goal is to obtain the funds necessary for development – whether at the pre-seed, seed, round A or growth financing stage.

When it comes to fundraising, the following are key:

• analysis of capital needs
• business model presentation
• quotation
• preparing the pitch deck
• conducting investment talks

Well-planned investment fundraising allows a company to build a stable financial foundation, increase its growth rate, and gain access to the knowledge and resources that an experienced investor brings to the organization.

An investment fundraiser is a specialist responsible for obtaining financing for a company, startup, or project by building relationships with investors, preparing investment materials, and managing the entire investment fundraising process.

Their role is to analyze the organization’s capital needs, prepare a fundraising strategy, communicate with potential investors, and coordinate Due Diligence processes, negotiations, and the finalization of the financing round.

In the fundraiser position, competences in investment marketing, finance, and communication, as well as the ability to present the project in a way that increases the chances of obtaining capital, are particularly important.

Fundraiser works to help the company go to market faster, develop the product, scale its operations, and establish relationships with partners who will bring not only funds but also experience and business support.

In practice, an investment fundraiser serves as a liaison between the company and the capital market. They prepare a pitch deck, conduct outreach, analyze fundraising campaigns, monitor results, and support management throughout the entire funding process, from initial contact to round closing.

The investment fundraising process is a structured sequence of activities designed to lead a company to raise capital from qualified investors. While each financing round is different, the steps are typically very similar.

1. Analysis of capital needs and preparation of strategy
   The organization determines how much funding it needs, what the funds will be used for, and what type of investor (i.e. VC, business angel, corporate venture fund, industry investor) best meets its goals.
2. Preparation of investment materials
   Key elements include a pitch deck, teaser, financial model, market analysis, growth strategy, and valuation. These are the elements used by the investor to assess the project’s potential and the feasibility of securing financing.
3. Building a list of potential investors and outreach
   The fundraiser or investment team prepares a list of potential investors, conducts outreach, sends a teaser, schedules meetings, and manages communication. At this stage, the project’s alignment with the fund’s investment strategy and the quality of the materials are crucial.
4. Investment meetings and negotiations
   The company presents the project, answers questions, and presents the business model and results. If the investor is interested, negotiations begin regarding the valuation, investment terms, and the parties’ participation in the project.
5. Due Diligence and finalization of the round
   Once the parties reach a preliminary agreement, the investor conducts Due Diligence, analyzing the financial, legal, technological and market aspects.
   This stage often involves using a Virtual Data Room for secure and structured document sharing. Upon successful completion of the DD, an investment agreement is signed.
6. Closing the round and capital allocation
   Once the documents are signed, the funds are transferred to the company, which can begin implementing its growth and scaling plan. This is the moment when the investment fundraising formally concludes as a success.

Well-executed investment fundraising shortens the time to obtain financing, increases the company’s valuation and increases the chances of establishing valuable cooperation with investors.

What is investment fundraising?
Investment fundraising is the process of raising capital from investors such as VC funds, business angels, industry investors, and financial institutions to grow a company, scale a product, or implement new projects.

Who is an investment fundraiser?
This specialist is responsible for obtaining financing, preparing the pitch deck, conducting outreach, coordinating conversations with investors, and supporting the company throughout the fundraising process: from strategy to closing.

How long does the fundraising process take?
Depending on the company’s stage of development and the type of investors, fundraising typically takes between 3 and 9 months. Outreach, negotiations, and the due diligence process take up the most time.

What documents are needed to start fundraising?
The basic materials include: pitch deck, teaser, financial model, market description, growth strategy, competitive analysis, and corporate documents, which are sent to all interested parties during the Due Diligence stage.

How does VDR help in the fundraising process?
The Virtual Data Room tool accelerates and secures the fundraising process by enabling secure document sharing with investors during Due Diligence. This allows the company to shorten deal times, increase transparency, and build investor trust early in the round.