Are you ready to close your deal?
Closing a deal means that you are no longer accepting any new investment requests. You might do this when the allocation amount agreed with the founder is reached, or when no new investments are likely to come in, or if the founder wants to close the round.
When can I close the deal?
Anytime you want. You are not required to leave the deal open to the deadline date you set. You can also keep it open longer.
How can I close the deal?
At this stage, let the team at Aussie Angels know and we'll change the status for you.
What to do once the deal is closed:
1. Send a post to all LPs who have requested to invest to let them know that their investment has been accepted and what to expect next.
Here's a template you can use:
Thanks for getting your investment request in, excited to have you as a co-investor on DEALNAME! FOUNDERNAME is also excited to welcome you!
We hit our allocation amount over the weekend, so the deal is now closed to any new investments.
Your investment request has been accepted (pending verification if you haven't already done that). You'll get an Investment Schedule (with funds transfer instructions) to sign shortly. Please sign and transfer funds as soon as possible when you get that, it's important we move quickly so we aren't slowing things down and we're seen as founder-friendly.
Any questions please ping me!
Thanks!
2. Check which of your LPs have not yet submitted an Investment Entity, and ask them to complete that step.
Go to the Investment tab on the deal and see who has 'Draft' listed under the 'Investment Entity status' column.
If an LPs investment entity is still listed as Draft that means they haven't submitted their details to AA to be verified yet, and we need them to do this in order to verify them (and thus accept their investment in the deal).
Reach out to them and ask them to do this ASAP, here a template you can use:
This is just a friendly reminder that you need to submit your investment entity details (and also complete KYC/wholesale checks if you haven't already), in order to progress with your investment in DEALNAME.
Can you please do this asap? It's important we move quickly so that we give the founder a great experience.
3. Check in with the founder to give them an update on where things are at with your investors and timeline.
You want to keep the founder updated to manage expectations so now's a great time to check in with them! You may want to update them on the number of investments that came in, total commitments raised (don't forget to make note of fees), and give an estimate on timing for next steps.
Please note on the amount raised, try to refrain from confirming the final amount to founders as we will need to do this only once funds are in the bank, due to fees & any last minute LPs that fall out.
⚠️ Once the Deal is closed - be sure to intro the Founder to the Aussie Angels team for closing actions.
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EXTRA: sometimes LPs miss out on deals by moving too slow before they close, while this may seem like a negative experience at first, remember that this is an opportunity to reset expectations & get them excited for what's coming next! Besides, investors hate missing out on a good deal, so more than likely they will now move much faster on your next deals.