Readiness
This resource page on readiness outlines the key elements for raising community capital. Whether you are an entrepreneur looking for a start, a community builder seeking funds for your next project, or an established company exploring options to engage with your community, the following considerations will serve you well.
There are three key elements of readiness for a community capital raise. You don’t need to follow the order in which they are presented below to get ready successfully; simply read through these considerations and then address them in the order that makes sense for your project.
Much of the following content is adapted from our Community Investment Fund Handbook & Toolkit, which we reference throughout this page.
Project
Something must have sparked your interest in raising community capital—an entrepreneurial idea, a dilapidated building in your downtown, or a new concept for your business. Whatever it is, the more passion you and your team have for it, the more you believe in it and see layered benefits for your community, the easier it will be to engage support and capital.
One consideration to keep in mind is that a community capital raise will more likely be successful if the project already has some traction in your community. Raising start-up funds from a broad cross-section of your community before the venture has revenues or significant assets may be hard. Friends and family, alongside traditional funding sources, may give you just what you need to launch and generate some revenue to then power your next step with community capital.
Next Steps: Work through the Operating Structure Checklist in the Community Capital Toolkit
People
The team that you assemble or join to raise community capital should be well-rounded. Each team member will bring many things to the project, including their age, gender, networks, and qualities. Considering this spread as it relates to the needs of your project will ensure that everyone involved has something to contribute and, therefore, feels valued.
Alongside the individuals within your team is the structure of your team. The structure is what determines each member’s contributions, as well as how they relate to the contributions of others. Oftentimes, there are elements of your project that will require skills not present in your team, so clarifying the structure of your team also clarifies how those outside of your team relate and contribute.
Next Steps: Work through the Team Builder Matrix in the Community Capital Toolkit
Finances
Another key element of readiness for a community capital raise is clarity around your finances. Not only do you need to understand where you are, but you and your team should also have as much clarity as possible about where you are headed. This will shift through time as well, so continue to revisit it to ensure that this clarity remains.
Understanding your project’s potential revenues and expenses is likely a good place to start. From this, you may consider what the reality is of how much funding will need to come from your community capital raise and how much you might need to seek from alternative sources.
With an initial goal for your community capital raise, you are ready to explore the offering strategies available and choose the one that meets your needs with the consultation of a lawyer.
Next - Capital Raising Strategies
Feeling ready to explore the strategies for raising community capital? Continue on for key resources.