The Capital Readiness Report – Phase 1
The “Capital Readiness Report,” or “CRR,” is a process that has proven more than 75% effective in predicting the ultimate success of a venture during its seed, startup, and growth stages. Developed by Blue Moon Advisors in the course of nine years and 100,000 man hours of research closely tracking approximately 300 companies seeking capital, the CRR is a deliverable diligence tool for entrepreneurs and capital providers. A company’s CRR score correlates highly with both the likelihood of receiving funding and with the amount received. Importantly, the CRR also identifies weaknesses in companies not qualified for capital, with a company’s score correlating highly to survivability. Successful ventures are defined as businesses earning a CRR score of 925 or higher (out of a possible 1,000) that later achieve three benchmarks: (1) partial or full funding, (2) remaining in business for a minimum of three years, and (3) repaying lenders or investors through an exit or per original agreement terms.
The CRR has five primary purposes:
(1) coaching potentially successful companies by isolating critical weaknesses
(2) ensuring that the correct type and amount of capital are sought
(3) determining the funding feasibility of the applicant
(4) predicting success potential by identifying companies most likely to surpass the three-year threshold of an early-stage company
(5) dissuading unqualified applicants from moving forward
The Capital Readiness Report has 10 sections:
01 – Registration – Stage – Company – Entity – Leadership – Governance
02 – Due Diligence – CANVAS – Market Study – IP – Taxes – Competition
03 – Capital Type – Amount – Use of Funds – Stack – Repayment
04 – Financial Model – Pro Forma – Forecasts – Financial Statements
05 – Business Plan – SWOT – Products – Services – Operations – Risks
06 – Brand – Images – Website – Marketing – Sales
07 – Valuation – Cap Table – Owner Equity – Shareholders
08 – Presentation Materials – Deck – Video – Offering Documents – Articles
09 – Fund Raise Plan – Investor Marketing – Data Room
10 – Summary – Exit Strategy – Readiness – Responsiveness
In June of 2016, Blue Moon Advisors introduced its proprietary ‘fund-readiness’ evaluation system: The Capital Readiness Report. The Capital Readiness Report is an expansive One Hundred (100) Data Point list that methodologically exacts every feature of a business that an individual investor, institutional investment firm or loan underwriter would need to review in order to make the decision to capitalize an issuer. Each Data Point is worth Ten (10) Points, totaling to a sum possible score of One Thousand (1,000) Points. In the experience of the Blue Moon Advisors’ executive management team, every Client that has reached a score of Nine Hundred Twenty-Five (925) has successfully acquired capital.
Through the propriety capital readiness system, Blue Moon Advisors is able to provide the following:
Strategic Capital Plan. Blue Moon Advisors provides assistance and support to owners of privately held companies in their efforts to monetize, grow, and diversify their business equity. Whether your goal is obtaining seed or start-up capital, continuing to grow your business, or diversifying your net worth by exploring liquidity options, Blue Moon Advisors has the experience and expertise to guide you through the critical thought process required to achieve the two major goals of fundraising: maximum valuation and minimal time to funding.
In attempting to develop a Strategic Capital Plan, a communication gap or disconnect often occurs between companies seeking access to capital and the investment community. Blue Moon Advisors bridges that gap by providing third party due diligence and professional, thorough, accurate and compliant documentation for its Clients, allowing the Clients to focus on the management of their businesses as the fundraising process unfolds.
As part of the ongoing process, Blue Moon provides strategic business and financial services to position its Clients for scalable and sustainable growth by connecting them to a variety of early stage venture capital funding sources. To that end, Blue Moon Advisors will create and develop a targeted, customized approach to best suit each Offering or Transaction, including assistance with the presentation and marketing of individualized Business Plans and Private Placement Memoranda to qualified capital sources looking for investment opportunities, including private capital investors for early stage companies, institutional investors for small business, a variety of debt financing sources and virtual private placement funding portals.
Fund Readiness. While planning is often tedious and time consuming, there are critical core fundamentals that must be addressed before entering the world of fundraising. Simply put, no “new” business succeeds without a detailed and comprehensive Business Plan. Before any checks are issued, investors will evaluate your business based upon certain objective criteria to determine if you are “fund ready,” all of which must be addressed by you and set forth in your Business Plan.
From this objective perspective, readiness can be evaluated through a simple point system: at least Nine Hundred Twenty-Five (925) out of One Thousand (1,000) Points. Click on the link below to initiate the capital readiness process.
Providing more than the answers…
For 20-years most clients have asked us the same four questions. How much does all this cost? How long will it take? What are my chances of getting money? What is your success rate?
How much does it cost? And how long will it take? There can be as little as 5, and as many as 430 items on a checklist for fund readiness. We have more than 50 funnels for access to capital. The first step is to take a fund readiness review. Then we will interview you to assess the right product and service. We will provide a detailed analysis and proposal to execute the proper fund readiness plan.
The chances of “Funding Success” and our success rate is more determinate on the client’s package being at 100% than any other factor. In our experience, when a client is Fund Ready, they gain access to capital. We have been a party to hundreds of projects being funded through debt, equity, royalty or combinations of capital resources when clients are positioned properly.