Fundraising Section

The Fundraising Section

In this section, we configure parameters related to the fundraising activities of the business.

1. Fundraising name: This is the name of the fundraising program or round. Examples include Seed Round, Series A, Series B, etc.

2. Equity offered: This is the percentage of equity that the business offers to investors. It's the share of ownership investors will receive in exchange for their capital.

3. Fundraising type: This describes the form of fundraising. There are three basic forms of fundraising mentioned: Common Stock, Preferred Stock, and Paid in Capital.

   These forms of fundraising will be used to correspondingly input values into specific sections of the financial statements.

   • Firstly, the values entered here will affect the Equity section in the Balance Sheet. The additional capital will increase the corresponding value of the line item for Common Stock, Preferred Stock, or Paid in Capital in the Balance Sheet.

   • Secondly, the values entered here will impact the Cash section in the Cash Flow Statement. The additional capital will increase the corresponding value of the Cash from Financing Activities line in the Cash Flow Statement.

Effectively managing fundraising activities is critical for a business’s growth and development. By offering equity, a business can secure the necessary capital to expand operations, invest in new projects, or strengthen its financial position. The choice of fundraising type (Common Stock, Preferred Stock, or Paid in Capital) reflects both the strategic approach to raising capital and the implications for the company’s equity structure and investor relations. This process directly influences the company’s balance sheet and cash flow statement, reflecting the influx of capital and the distribution of equity among new investors.