A capital raising tool is one that helps in raising money for a company. It can be employed to manage the company’s capital table, grant equity grants and also perform valuations for employees and investors. The top platforms also integrate legal workflows into the platform, and provide support for ESOPs and equity-based transactions.

The process of raising capital is an enormous undertaking for businesses and the best way to get your ducks in order is to ensure that all of your documentation is up-to current and prepared in advance. This means that you have a reliable executive summary, profit and loss statements in addition to balance sheets and other financial documents in order to provide potential investors with the information they require as part of your due diligence for capital raises.

There are a few different ways that a company can raise capital through private debt, equity, crowdfunding and small business administration (SBA) loans. All of these methods follow the same steps, but some may require a bit more paperwork based on the source you are sourcing funds.

Private investors venture capital companies, private investors, and hedge funds are the most common sources of capital. Prior to investing, many of these funding sources want to look over a company’s finances records. This includes a profit and loss statement and balance sheets, tax returns, and bank statements. This process is known as due diligence and it’s best to have a data room due diligence program such as DealRoom or a different option in directory place to make the process as efficient as you can.