How Raising Funds Work?
Here, we outline the essential steps for successfully raising capital through securities-based crowdfunding. This will help you navigate the crowdfunding journey with clarity and confidence.
Step 1: Provide KYC and Due Diligence Documentation
To begin, you need to submit Know Your Customer (KYC) documentation and any relevant due diligence materials to confirm eligibility. Completing this step ensures that you are compliant with the necessary regulations, safeguarding both your interests and those of your investors.
Step 2: Conduct a Review and Analysis of the Investment Opportunity
To analyze an investment opportunity effectively, it's crucial to conduct a comprehensive review that includes assessing market potential and competition, evaluating business viability and financial projections, and identifying risks and opportunities. This in-depth analysis provides valuable insights, which is essential for attracting investors.
Step 3: Select the Appropriate Business Model
Choosing the right business model is crucial for the crowdfunding campaign’s success. Consider how you want to structure your offering, whether it be equity-based, or an SPV model. Our subscription agent partner will play a key role in helping you to select the correct model.
Step 4: Prepare Detailed Information for Potential Investors
Once your analysis and business model are complete, we create a comprehensive information package for potential investors. This package includes a detailed business plan with objectives and strategies, financial statements and forecasts, information about your team and their roles, and clear details regarding the investment opportunity and expected returns. A well-prepared pitch enhances the attractiveness of your offering and ensures transparency for potential investors.
Step 5: Offer the Investment Opportunity to Investors
Once your materials are ready and all regulatory compliance requirements have been met, we publish details about the opportunity to potential investors. Utilize our platform to reach your target audience, leveraging email campaigns, social media, and our investor network.
Step 6: Determine If Funding Requirements Are Met
As investments are received, the iMowazi team continuously monitor funding activities by calculating the total amount raised, interest from potential investors, and the campaign's progress against timelines and goals. Once you reach your desired funding threshold, you can proceed with the next steps in your business growth, knowing you have secured the necessary capital.
