Got a financing round coming up?
We make sure everything runs smoothly! From choosing the ideal financing structure and negotiating successfully with investors to drafting airtight transaction documents -we support you with strategic insight and legal precision. We’re also by your side during signing and closing to ensure your deal is completed efficiently.
Financing Rounds - Simply Explained
In an (equity) financing round, startups receive capital by selling shares in their company. Investors - such as business angels, venture capital firms or institutional backers - invest in promising business models to benefit from long-term growth.
Financing typically occurs
in multiple stages:
- Seed funding: Early capital for developing the business idea, building a prototype or validating the market.
- Series A: Growth funding to take the startup to the next level via scaling operations or entering new markets.
- Series B & C: Expanding market presence, internationalization and potentially preparing for an IPO.
Even the best ideas can’t succeed without sufficient capital. The right financing strategy enables:
- Market entry & scaling: Investment in marketing, sales and infrastructure.
- Product development: Building and improving prototypes and technologies.
- Investor outreach & negotiation: Gaining access to strategic partners and markets.
- Company growth: Accelerating toward profitability and, ultimately, a successful exit.
What you can expect:
Structuring & Strategy
We help you develop the optimal financing strategy and present your startup to investors in a legally sound and strategic way.
Legally Compliant Contracts
Our experts handle all the contracts and documents - from the initial term sheet to the signing of the final transaction agreements and drawing up of the notarial deeds.
Negotiation Support
We assist you in negotiating with investors and ensure fair, balanced deal terms that protect your company’s interests.
Clear Pricing
Starting at
CHF 5'000
(plus VAT),
depending on the complexity and scope of the transaction.
(Notary and commercial register fees not included.)
How long does it take?
Who is it for?
What is achieved?
How can Vectra Advisors help?
Vectra Advisors are your first choice for M&A.
Our LAWYERS+ support you quickly and pragmatically with all your legal needs. Let’s talk and get started!
Your contact for this topic:
Book a free, non-binding introductory call with us:
FAQ: Frequently Asked Questions about Financing Rounds
A financing round refers to the process in which startups raise capital from potential investors to accelerate their growth or enter new markets. This typically involves selling equity or using alternative financing methods.
What types of financing rounds are there?
Funding rounds differ based on the company’s development stage:
- Seed Funding: Capital for product development, proof of concept, or building a minimum viable product (MVP).
- Series A: Focuses on scaling the business model and acquiring a larger customer base.
- Series B: Funding for expansion into new markets and business areas.
- Further Rounds (Series C and beyond): Capital for international growth, mergers, or preparation for an IPO.
There are also alternative funding options like bootstrapping, convertible loans or private equity investments from domestic or international firms.
The process generally includes the following steps:
- Thorough Preparation: Creating a pitch deck, business plan and possibly a company valuation.
- Finding Investors: Approaching potential investors, including institutional investors or private equity firms.
- Negotiation Process: Discussing the term sheet, investment amount and cap table (equity distribution).
- Due Diligence: Investor review of finances, strategy and legal structure.
- Contract Negotiations: Drafting and negotiating the investment agreement and related documents such as the shareholder agreement.
- Transaction Closing: Signing the contracts and transferring the capital.
The success of a funding round depends on careful planning and persuasive negotiations with investors.
Advantages:
- Access to additional capital to accelerate growth
- Investor expertise and access to valuable networks
- Opportunity to expand into new markets and strengthen market presence
Disadvantages:
- Dilution of ownership, which can affect decision-making power
- Time-consuming negotiation process with investors
- Potential challenges or uncertainty in determining company valuation
A Cap Table (Capitalization Table) outlines how company shares are distributed among founders and investors. It’s essential for negotiations and is updated with every new funding round.
When is the right time for a financing round?
A financing round makes sense when the startup:
- Has a strong proof of concept
- Shows clear growth potential
- Has established an initial market presence
- Needs additional capital to reach the next development stage
Why is thorough preparation crucial?
Preparation is key to a successful financing round. Based on our proven methods, we support you with:
- Drafting term sheets and investment agreements
- Leading negotiations with investors
- Coordinating signing and closing of the transaction
