6. Due Diligence and Testing Reviews
Once the due diligence and your test scores are completed, the venture capitalists normally meet to discuss the findings. This meeting is all about the value proposition of your company and if it makes a compelling investment.
If issues are discovered in the due diligence investigation that make investment in your company undesirable, the venture capital firm may ask to hold more meetings with you to determine if the issues can be overcome. While highly unlikely, some venture capital firms will refer you out to a consultant to resolve the issues. If the issues can be resolve the venture capital firm can move forward with the investment
7. Final Documents
If due diligence went well and your company proves to be a compelling investment, the venture capital firm normally calls for the drafting of final documents. This process typically involves some final negotiations regarding any outstanding issues discovered in the due diligence investigation and the final company valuation.
8. Monthly Due Diligence Updates
After your company has received funding most venture capitalists will require monthly and quarterly updates to key information. This will include updated financial statements, any changes to organizational documents, all new contracts or agreements, and any market information that has potential to affect the business.
Still Think You and Your Company Have What it Takes To Get Venture Capital?
The process presented here has many other factors that will be covered in the chapters to come. In order for you to successfully navigate your way to a venture capital investment you must study hard all that will be required of you. You will have to have an answer for every question that is raised and be able to fully support your answers with research, industry statistics, and much more.
I do not envy the task in front of you, but if you are determined to proceed with your quest to obtain venture capital then please press on and I will tell you more.
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