Fundraising
Raising funds cannot be improvised. Whether you are an early-stage startup in the seed phase, a Series A company, or a growth-stage SME, a successful fundraise rests on three pillars: a defensible valuation, documentation that convinces, and a structured process to approach the right investors.
A successful fundraise is not just about securing capital. It relies on a defensible valuation, rigorous documentation, and a structured process to convince the right investors at the right time.
What is a fundraise?
A fundraise consists of opening a company's capital to new investors — venture capital funds, growth equity funds, family offices, business angels, or strategic investors — in exchange for an equity stake.For a startup, it marks a decisive milestone: validating the business model at seed stage, accelerating growth in Series A, or scaling internationally in Series B.
For an SME, it enables external growth, strengthens equity, or prepares a partial ownership transition.In both cases, a successful fundraise demands rigorous upfront preparation: a well-argued pre-money valuation, round structuring, quality investor documentation, and a methodically managed process.
Step 1
Preparation
Define fundraising objectives, frame the target investor profile, conduct the valuation, and structure the round.
Step 2
Marketing
Identify and confidentially approach the most relevant investors.
Step 3
Due diligence
Enable selected investors to conduct an in-depth analysis of the startup or company.
Step 4
Negotiation & closing
Negotiate the term sheet, finalize the economic and legal terms of the transaction.
Why & when should you raise funds?
Fundraising occurs at key development milestones, when internal resources are no longer sufficient to finance strategic ambitions. Each situation calls for a specific structure and type of investor.
Finance organic growth
Accelerate commercial development, recruit, invest in R&D, or deploy an ambitious marketing strategy. This is the most common case for Series A or B startups seeking to reach profitability or prepare for the next growth milestone.
Finance external growth
Secure the resources needed to carry out one or more targeted acquisitions. This context primarily concerns SMEs and mid-sized companies looking to consolidate their sector or accelerate their development through external growth.
Strengthen equity
Improve the balance sheet structure, enhance debt capacity, and reassure banking partners during an investment or transformation phase. A minority fundraise with a growth equity fund allows founders to retain control while solidifying the financial foundations.
Transmission and exit
Bring in a minority investor to support the final development phase before a full sale or an IPO. In this context, the fundraise serves to maximize valuation at exit.
Reach a strategic milestone
Internationalization, business model pivot, major technological or industrial investment: a fundraise enables companies to cross a critical threshold without prematurely diluting the value created.
Bank refinancing
When a company renegotiates its credit lines or diversifies its financing sources, structuring makes it possible to adapt debt to the generation of cash flows, in order to optimize the cost of capital and increase financial flexibility.
Tailored support from preparation to closing
End-to-end support at every stage of the fundraising process.
- Define the investment thesis and narrative: We help the founder formalize a compelling company story, consistent with financial data and aligned with the expectations of targeted investors.
- Build a defensible valuation: We conduct a rigorous valuation (Berkus, Scorecard, Risk Factor, Venture Capital, DCF, sector multiples, comparable transactions) that forms the foundation of every negotiation and protects the founder from excessive dilution.
- Structure the round: We define the optimal combination of financial instruments (preferred shares, warrants, convertible bonds, founder warrants) to align interests between founders and investors while preserving the balance of control.
- Prepare the documentation: We structure all necessary documents — business plan, pitch deck, indicative term sheet, financial model, data room — to meet the standards of institutional investors and seed funds.
- Identify and approach investors: We target the most relevant venture capital funds, growth funds, family offices, or strategic investors based on sector, ticket size, and investment thesis.
- Drive the negotiation through to closing: We coordinate all exchanges, manage investor due diligence, and support the negotiation of the term sheet through to the signing of the shareholders' agreement.
Diverse range of clients advised
Startup
Executives/Management
Family shareholders
Private equity funds
Family businesses
SMES
operations analyzed
years of expertise
clients advised
Discover our TRACK RECORD
The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.
Frequently Asked Questions
A bank loan is a debt to be repaid with interest, with no dilution of capital. A fundraise involves the entry of a shareholder into the capital in exchange for financing, with no immediate repayment obligation, but with dilution of the founders or existing shareholders.
The investor profile depends on the stage of development. At seed or early stage: business angels, seed funds, early-stage venture capital funds. At Series A and B: venture capital funds (VC) and growth equity funds. For SMEs and mid-sized companies: growth capital funds, regional funds, family offices active in co-investment, and strategic industrial investors. Some profiles, such as family offices, are active at every stage.
The pre-money valuation is the estimated value of the company or startup before the entry of new capital. The post-money valuation incorporates the amount raised. If a startup is valued at 10 pre-money and raises 2, its post-money valuation is 12. These two references are at the heart of every negotiation with investors.
A term sheet is the document that summarizes the main conditions of an investor's entry into the capital: pre-money valuation, amount invested, type of instruments (preferred shares, convertible bonds, warrants), and associated rights (liquidation preference, anti-dilution, drag-along, tag-along, information rights). It precedes the drafting of the final legal documents and the shareholders' agreement.
A cap table is the document that presents the distribution of capital among all shareholders, before and after the transaction. It incorporates the different categories of shares, dilutive instruments (BSPCE, warrants, convertible bonds), and the dilution effects at each round. It is a central document in any fundraise, closely scrutinized by investors during due diligence.
At a minimum: a structured pitch deck (10-15 slides), a business plan with financial projections over 3 to 5 years, a valuation supported by recognized methodologies, an up-to-date cap table, and an organized data room for due diligence. The quality and consistency of this documentation largely determines the credibility of the file.
Between 4 and 9 months depending on the complexity of the file, the target amount, and the investor profile. Generally, it takes 1 to 2 months of preparation, 2 to 4 months of investor outreach and due diligence, then 1 to 2 months of negotiation and closing. Thorough upfront preparation significantly reduces timelines.
Ordinary shares confer standard rights (voting, dividends, pro-rata liquidation bonus). Preferred shares grant investors additional rights: liquidation preference (priority repayment in the event of a sale), anti-dilution clauses, enhanced information rights, or veto rights over certain strategic decisions. Preferred shares are very common in venture capital and growth equity transactions.
The Bon de Souscription de Parts de Créateur d'Entreprise (BSPCE) is an instrument reserved for employees and managers of young French companies. It allows them to subscribe to shares at a pre-determined price, benefiting from favorable tax treatment upon exit. It is the primary equity incentive tool for startup teams.
Yes. We support founders from the seed and early stage phases, well before Series A. At this stage, preparation is often the differentiating factor: a structured valuation, well-chosen instruments (convertible notes, BSA Air) and a clean cap table from the outset prevent many complications in subsequent rounds. We also work on smaller tickets when the structuring of the file justifies it.