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Below is a sample of the extensive amount of information that venture capital firms are going to require in order to "just consider" funding your capital request. The burden of providing all this information is going to be on you and your management team. Having been through this process a few times myself, I can tell you from personal experience that it is very painful and extremely time consuming. You will end up putting your business on hold while you proceed through this maze. Can you afford it? |
| 1. Corporate Documents: |
| Articles of Incorporation Bylaws and operating agreements Shareholder agreements Minutes of Board of Directors and Shareholder meetings All documents furnished to shareholders and directors Certificates from all states and jurisdictions where the company does business |
| 2. Previous Securities Issuance: |
| Copies of stock certificates, warrants and option agreements Complete Stockholder contact information Number of outstanding shares, dates of issuance, and percent ownership All outstanding preferred stock, including covenants All outstanding options, warrants or convertible securities Employee stock benefit programs; stock options, stock purchases or others |
| 3. Financial Information |
| Audited financial statements since inception Income statements, balance sheets, cash flow statements Records of all changes in equity position Accounting methods and practices Company prepared monthly or quarterly statements A three year budget and financial projections A complete and current business plan Accounts receivable aging and accounts payable aging Product or service pricing plans and policies Revenue and gross margins by product or service Extraordinary income or expense details Explanation of any material write-downs or write-offs A summary of all bad debt experiences Details of any outstanding contingent liabilities Accountant report on the company’s financial condition |
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