For those entrepreneurs who may be unfamiliar with seeking angel or
venture capital investment, the general steps of the investment process are outlined
below. The details are flexible and depend on the specific situation.
Initial Contact. Typically, the entrepreneur is introduced
by a third party professional known to both parties.
Follow-up Contact and Business Plan. If there appears to be a
mutual fit during the initial contact, we usually request some form of business
plan. While a complete business plan is helpful in evaluating an opportunity, we realize
that it is often unrealistic for a very young company. In such cases, an executive summary
explaining the idea, products and initial execution plan will suffice. [Please note,
we do not sign non disclosure agreements at this preliminary stage.]
Meetings with Management. After reviewing the business plan, we
will have several meetings with management to discuss the plan and get to know the team.
Due Diligence. During the process we will make a thorough
analysis of the companys products and market. In addition, we may talk to customers
and suppliers, check references of the management team, and at times enlist the aid of
outside industry experts.
Deal Structuring and Investment Decision. As we move closer to an
investment decision, the details of the deal structure will be discussed and outlined in a
term sheet. Upon agreement, the legal documentation for the investment will produced.