Step-by-Step Guide To Venture Financing Venture Presentation Guidelines Start-up Business Plan: Executive Summary Start-up Business Plan Start-up Business Plan: Executive Summary Milestone Chart Cash Flow Forecast Management Team Start-up Business Plan Due Diligence Worksheet Investors Selection Criteria: Business Anagels and VC Firms Due Diligence: Study Areas Initial Screening: Company Assessment Worksheet Initial Screening: Company Assessment Worksheet Due Diligence Negotiating and Closing the Deal Valuation of a Start-up Company Ten3 Business e-Coach at 1000ventures.com Legal Contract: Structuring the Deal Funding: Typical Terms of Preferred Stock Issued to Venture Capitalists Venture Financing Ten3 Business e-Coach at 1000ventures.com Venture Management

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Venture Financing

 

 

 

 

 

 

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Venture Financing Stages (Phases of Venture Capital Funding)

Funding Basics
Source: Venture Planning Associates
•Know what business you are in!  (Research and Development, Manufacturing, Distribution, Sales or Service)  Attempting to do all five areas is extremely expensive and risky.  Each area is a business of all its own and has its own financial dynamics. Be focused on what you do best and out-source the rest.
•Have a well-rehearsed and polished presentation. Remember that you are a "Salesman" for your business first and a "Techie" last.  You are selling the investor on the wisdom of his investing with you and you must answer the six investor questions listed above. You should not spend the bulk of your time describing your product or service. Spend time on the market, management and financials.
•Develop a list of private investors, venture capital firms, or possible joint venture companies. During this phase, you will receive lots of feedback about your business, its market and the possibilities for raising capital. Incorporate the good ideas and modify you business plan, but remember that you cannot please everyone.  Stick to your guns. Get more tightly focused and persist.
•Most Seed Capital will come from close friends and associates. Startup Capital comes from Private Investors or "Angels", and the big bucks will come from Venture Capital companies after you have survived the first two stages.
•Do not rush the investor!  Be patient and do not expect much positive response fast.  If possible, locate a minimum of three potential investment groups to work with simultaneously. This will allow you options and leverage against "low ball" offers.
•Keep your eye on the goal of lowering perceived risks to the investors. Most professional investors will accept Moderate Risks with commensurate High Reward Potential.  Private investors and venture capital companies are not gamblers.
•Do not over-sell. Invest your time in perfecting and improving your sales prospects, decreasing future costs, and decreasing potential risks.  A project that has pre-sales is much easier to fund than one with no future income stream other than projections.