The Four Phases of Venture Capital Deals
Phase 2 - Investor Interaction

(Slide 34  of 50)

  • The second phase, interaction with investors, starts with the first contact with prospective investors. It ends long after the closing. Your company’s methods of communicating with investor prospects can make the difference between success and failure.
    • The method of contacting investors should be personal, when possible, and direct. Introductions help differentiate your plan from others.
    • Negotiation begins with the first contact, while investors are still sizing up their interest in investing and evaluating the sophistication of the company’s management.
    • The company’s diligence investigations of investors should continue through to closing.
    • Management’s mastery of the company’s reasonable business plan projections and competitive issues can drive up valuation.

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