If you navigate to a Capital Raise > click on the Opportunities section. You will notice two different options in which to "view" the Capital Raise Opportunities. Those are the Grid view (default) and the Pipeline view; this article will cover the latter.
By default, there are a few stages (see snapshots at bottom) within the default pipeline. We will use an example that we typically see in order to help run through these stages with you.
Prospect (sponsor manually moves investor) - When you add a new opportunity from the Contact section as a possible opportunity to invest in a new Capital Raise, they will default to the first stage; Prospect stage. A contact would fit in this stage if the sponsor believes they would be willing to invest into the new deal.
Qualified (sponsor manually moves investor) - Let's say this is a 506(c) deal and all of your investors will need to be accredited. You speak with the investor and they verbally verify that they are an accredited investor. You would move the investor into the Qualified stage. Keep in mind, if you turn on the accreditation feature within InvestNext, we will work with the investor and our third-party accreditation provider to verify that they are, in fact, accredited. That will be part of the Commitment Flow when the investor decides to move forward with the investment.
There may be other benchmarks your firm requires prior to allowing investors to participate in the new capital raise. When the investor hits all of those, you would move them into this stage.
Interested (sponsor manually moves investor) - The investor gets back with you a day or two later and mentions that he is "interested" in the deal but wants to see the final legal documents/offering memorandum/tear sheets/etc. when you get them finalized from your attorney/business partners, you would move them into this stage.
Reviewing (sponsor manually moves investor) - Now, the legal documents have been finalized, and you have added them to the Deal Room for all of your potential investors to view. You can reach out to those interested investors, letting them know.
Committing (InvestNext automatically moves investor to this stage) - Your firm is now ready to start accepting investments from your potential investors. You reach out to them and let them know they can log in to InvestNext and start to invest. The investors will be taken through the commitment flow. When they get to the lnvestment Disclaimer section and check the box certifying that they have read and understand the investment disclaimer and click Next, the pipeline stage will automatically move this investor into the Committing stage.
Complete (InvestNext automatically moves investor to this stage) - Once all of the required documents have been signed by the investor and countersigned by the manager/sponsor. The investor will be moved into this stage.
Lost (pink section - Sponsors would manually move investors to this stage) - If during any stage along the investment process, the investor decides to not move forward with the investment, you can move them to the Lost stage. Why would you want to move them? Most sponsors want to keep track of investors that fully commit and those that started but never fully committed. Sponsors use this as a learning/teaching moment to reach out to these investors to determine "why" they didn't move forward. Valuable insight can be derived from these investors. Were they not happy with the deal metrics? Did they dislike the fees in the Private Placement Memorandum? Did they have a "real life" moment and need to put the earmarked funds towards something else?
Unqualified (pink) - Another useful stage is the Unqualified stage. In the example above, a sponsor may be raising capital for a 506(c) deal, and a particular investor may not be accredited. Sponsor can manually move them to the Unqualified stage. The Sponsor could find a deal a couple of months later, and it could be a 506(b) deal, meaning this particular investor would have the opportunity to invest in the new deal, if it fits their investment thesis.
As you can see, there are multiple stages in the default pipeline view. If your firm doesn't require this many stages, you can create a new pipeline or edit the default pipeline by following this help article:
