Think IPO Roadshow When Raising a Venture Round

Companies that go public on exchanges like the New York Stock Exchange and NASDAQ have a ritual late in the process called an IPO road show. Investopedia defines a road show as the following:

A presentation by an issuer of securities to potential buyers. Road shows refer to when the management of a company that is issuing securities or doing an initial public offering (IPO) travels around the country to give presentations to analysts, fund managers and potential investors.

Imagine spending six months documenting and auditing every aspect of the business, distributing the information to thousands of investors, and then setting up a two week sprint to present the pitch at dozens of meetings. Assuming demand is strong, the company goes public and throws a huge party. Finally, life continues on as a newly public company.

For entrepreneurs raising a venture round, treating it like an IPO with a corresponding road show is a good strategy. Extensive preparation followed by an intense period of pitching is the best approach to create a competitive deal environment (much like what investment bankers do when helping sell a company). Raising money is difficult, but with strong business fundamentals and fundraising process, readily achievable.

What else? What are some more thoughts on entrepreneurs treating the venture fundraising process like an IPO road show?

One thought on “Think IPO Roadshow When Raising a Venture Round

  1. Spot on post David.

    Entrepreneurs can benefit greatly by thinking and acting this way. Being efficient and effective when raising capital yields two great results – more successful raises and raises happen more quickly allowing the entrepreneurs to get back to growing the business.

    Having helping several companies go public, there is a checklist and discipline involved. Those who follow it, win.

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