Raise smarter: master your fundraising strategy to close your round quicker

Fundraising really isn’t just about your pitch deck or how well you can demonstrate traction on your product. It’s also about investigating what investors can offer you. 

Join SeedLegals’ funding and equity strategist Bethany Faulkner and account manager Edward Popham as they break down the pre-raise essentials every founder needs to master, from getting your cap table and documents in order, to dream investor checklists and green flags, to understanding the difference between traditional and agile fundraising. 

Key takeaways

Have your house in order

• Investors care about your pitch and product, but also your business foundations. Up-to-date Company House filing is essential and accurate cap tables allow investors to assess ownership, dilution and future investment. You won’t woo them if either of these are missing.
• Sort your co-founder backup plan early – this includes producing written founder agreements, in case of a founder fallout.
• Managing these basics before you open conversations with investors helps to dramatically speed up the closing process once you get commitment. 

SEIS and EIS – here’s why they’re non-negotiable

• SEIS (50% tax relief, up to £250k) and EIS (30% tax relief, up to £12m) are government schemes that incentivise UK taxpayers to invest in riskier early-stage businesses. 9/10 of investors won’t invest if you’re not eligible for SEIS/EIS
• Get Advance Assurance from HMRC before you start conversations. The process takes 4–6 weeks, and delaying it risks losing investor interest. 
• Create urgency and drive faster commitments by offering early investors the higher 50% SEIS relief, and later investors the 30% EIS relief.

Speed matters, so… traditional or agile fundraising?

• Traditional priced equity rounds require term sheet, shareholders’ agreements and articles to be agreed before any money hits your account, so you’re only as fast as your slowest investors. Rounds can take 6-18 months.
• Agile fundraising involves Advanced Subscription Agreements, Convertible Loan Notes, and Instant Investments/Deeds of Adherence. This option lets you bring cash in now and sort equity later, and it’s ideal when valuation is a sticking point.
• ASAs give you a 6-month window to grow your valuation before converting. Short-form documents mean you can turn them around in 48-72 hours, and you deal with one investor at a time, not a whole group.
• Deeds of Adherence are ‘cash now for equity now’, and these are perfect for friends, family or clear single-investor deals where valuation is already agreed. 

Timing your raise with the investment calendar

• The period just after 6th April (new tax year) through the early June is very busy – investors have a fresh pot of SEIS/EIS-allocated money and it’s top of mind. The period right before the end of the tax year also gets very busy as investors want to close deals before the tax year closes.
• Mid-June through August, however, are quiet as wealthy investors are often away on holiday. Activity picks up again from October through to December.
• Align your fundraising timeline with these windows and start preparing early if you want to raise before summer, especially since SEIS/EIS Advanced Assurance take 1-2 months to secure. 

Choosing the perfect investor for you

• Your pitch deck can be used as a filter – a concise deck communicating your problem, solution, business model and traction. It will attract investors who understand your market and repel those who don’t.
• Your green flags to look out for: 
  • investors who ask thoughtful questions aligned with your mission,
  • they offer value beyond money 
  • they’re transparent about timelines.
• The red flags:
  •  pressure tactics
  •  overconfidence without knowledge
  •   controlling term sheet terms that feel misaligned 
• If you’re a solo founder, set up an option pool before you raise. It shows investors you’re thinking about team growth and protects them from unexpected dilution later.