Venture Capital Procedure

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Usually a written business plan is required before the investment process is started.
A well-prepared candidly communicated business plan will include the following information:

Description of the business and a company history.

Business strategy and product/market opportunity.

Historic financial statement and forecasted cash flows.

Value of the business.

Capital requirements.

Profiles of key management personnel.

Management report card-discuss strengths and weaknesses.

All information provided will be treated confidentially.

Your business plan is a living document with two primary purposes: to provide a strategic plan for your company and to raise capital throughout its growth stages. As a strategic document, the business plan should evolve as your company develops and achieves critical milestones. As a capital-raising document, the business plan should comprehensively and concisely communicate your investment opportunity to potential capital providers.

If the business plan is of interest, the investor will conduct thorough due diligence on the company. During this time the investor will familiarize itself with the company and seek to build a partnership with management based on personal rapport, frank communication, and shared objectives.

It is very important to show respect and interest when the investor requests vital information regarding your company. By putting yourself in the eyes of the investor, you understand the importance of effective due diligence.

Investor final decision to consummate a transaction is based upon an analysis of management qualifications, market size and strategy, product viability, the business entity, and financial projections.