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VCs understand that the fundraising process is time consuming, taking entrepreneurs away from building the company.  Creating documents for investors can be one of the most time-consuming parts of the process.  While not all of the documents are likely to assist in operations, some of the materials can and should be created with operational purposes in mind to make more use of these efforts.

Here are five ways to make the fundraising process more useful to your operation:

1. Create projections in a manner that makes them easy to use for future planning and budgeting,
2. Design your uses of capital raised analysis to play into your short term budgets by making it sufficiently detailed,
3. Leverage the addressable market analysis to identify the most attractive target customer segments,
4. Revisit your competitive landscape when preparing investor materials to look for best practices and opportunities to enhance your model, and
5. Generate a sales pipelines document that can be leveraged by your sales department going forward (you’ll probably need an operational version of this document to share with your board in the future).

Fundraising can be a tedious process – try to get as much operational value out of it as possible.

This column was provided by Mark Davis. Mark is the author of Get Venture, a column designed to help entrepreneurs raise venture capital. In addition to his column, Mark is active in the venture community as an entrepreneur, advisor and venture capitalist. He currently works at DFJ Gotham Ventures, a leading early-stage IT venture capital fund based in NYC.

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This entry was posted on Sunday, October 12th, 2008 at 1:30 pm and is filed under venture capital, Quick News, NYC, Mark Davis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.