Funding your project or company

Equity funding

02 Useful tips

Preparing for fundraising – be aware that


  • Both debt and equity investment require some sort of due diligence
  • Fundraising is a complex activity which needs time for preparation, negotiation and closing
  • Don’t get timing wrong. Minimum time required for fundraising is 2-3 months, ensure a longer runway
  • Prepare and gather all needed documents before the fundraising. This will spare your time and bring a dynamic to the process
  • List of all needed documents and data for both debt and equity financing


Required documents for a business loan


  • Financial Documents usually last 2-3 years including P&L, Cashflow statement and Balance Sheet
  • Audited financials
  • Tax returns
  • Business licenses and Permits
  • Accounts Receivables and Accounts Payables
  • Detail of all Loans and Leases
  • Signed contracts
  • Proof of collateral
  • Income Proof Bank Statement for last 2 3 years
  • Business ownership proof Memorandum & Articled of Association
  • Business plan (including financial plan)


Required documents for equity financing.


Everything as for a business loan but as equity investments are more common in not yet profitable businesses other parts are needed additionally. You will also need to provide:

  • Innovative and competitive product or service with strong validation
  • Competition analysis
  • Demonstration of a strong team and leadership
  • Intellectual property ownership


Fundraising tips for equity financing


  • Always ask for advice and feedback, send updates prior fundraising
  • Personalized and numbers-oriented introductory mails
  • Know your numbers, metrics, market sizing and substitutes
  • Whole process can take several months (2 6), prepare materials
  • Understand market standards for Term sheets / Convertible notes
  • Find an investor who you want to build the company with
  • Know which investors fit you with their investment strategy
  • Show validation MVP or product ready? Future customer insights / feedback is not validation yet but might be enough for a pre seed
  • Market insights catalysators, size, competitiveness in the field
  • How to acquire customers any competitive edge?
  • Team's experience Product/Founder/Market fit
Cookies Definitions

TETRA Project may use cookies to memorise the data you use when logging to TETRA website, gather statistics to optimise the functionality of the website and to carry out marketing campaigns based on your interests.

We use the following cookies:

  • Required Cookies: They allow you to browse the website and use its applications as well as to access secure areas of the website. Without these cookies, the services you have requested cannot be provided.
  • Functional Cookies: These cookies are necessary to allow the main functionality of the website and they are activated automatically when you enter this website. They store user preferences for site usage so that you do not need to reconfigure the site each time you visit it.
  • Advertising Cookies: These cookies direct advertising according to the interests of each user so as to direct advertising campaigns, taking into account the tastes of users, and they also limit the number of times you see the ad, helping to measure the effectiveness of advertising and the success of the website organisation.

Go to top