![]() Investment principals will continue to discuss internally if your company is the right fit for investment. The investment team will ask a series of questions and a range of documentation. The management side of the VC will prepare a due diligence checklist, and the investment team will request the related information from you.ĭue Diligence is a thorough process to investigate the overall health of the company. When principals are sure about your company and so are their colleagues, they will proceed with initial Due Diligence. This will be helpful in updating your pitch materials and preparing for certain data that investors are interested in. □ Tip: Keep track of questions or any requests that investors have at the meeting. Check the interest level of investors real-time on access logs. You can share data with multiple investors and monitor which investor has viewed the uploaded materials. □ Upload and manage relevant materials by round in Data Room. You can see the interest level of investors through this period by checking which investors viewed the documents in our Data Room feature. This is part of a process to convince their colleagues at the firm and may take over several months.Īs the investment team reviews multiple startups at once, this request & review period may take longer than expected. Review □Īfter your successful meeting with the investors, the investment team will request a host of documents for evaluation and review. Find how an exit simulation will affect the outstanding capital contribution and total proceeds by stakeholder. You can check how securing an investment change the number of shares, percentage of ownership and export the results as an excel sheet. □Run easy investment simulations on QuotaBook, modeling different scenarios to find the best case for your business. These two factors may change the company’s shareholding percentages a great deal. ![]() Once the VC starts to review your company as a serious potential investment opportunity, they will then discuss the company valuation and investment size. Nailed the first meeting with your investors? Congratulations! The entire process - from the first meeting to the final contract and (most importantly) wiring of money - may sometimes take over a year. It’s best to have all the relevant information ready at hand for an easy ride without having to dig through your inbox every few minutes. Investors - Portfolio / Fund management teams □Ī summary of the activities at each stage is provided below. Investors - VC / Investment principals □️ Three groups are involved in the investment process. Please note that every VC firm might have different internal processes. Note: This article was written to provide a general overview of the VC investment process. In general, there are six stages from the first meeting before the wire transfer of the funding. Let us guide you through every step of the VC investment process and introduce how QuotaBook can help you along the way. Planning to raise VC funding in the upcoming months but still have no idea how it works? No need to fret.
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