article thumbnail

5 Steps To Finding The Best Investor For Your Startup

Startup Professionals Musings

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Investor due diligence on a startup is not a mysterious black art, but is nothing more than a final integrity check on all aspects of your business model, team, product, customers, and plan.

article thumbnail

4 Keys To A Successful Integrity Check With Investors

Startup Professionals Musings

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Visit reference customers, partners, and vendors. My best advice is to stick to the middle ground. Traction in the marketplace.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How To Prepare Your New Venture For Investor Scrutiny

Startup Professionals Musings

For the elite startups and entrepreneurs who manage to attract the investor they dream of, and survive the term sheet negotiation, there is still one more hurdle before the money is in the bank. Visit reference customers, partners, and vendors. My best advice is to stick to the middle ground. Traction in the marketplace.

article thumbnail

5 Keys To Vetting Investors Before You Accept Funding

Startup Professionals Musings

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Investor due diligence on a startup is not a mysterious black art, but is nothing more than a final integrity check on all aspects of your business model, team, product, customers, and plan.

article thumbnail

Dan Lok Explains Venture Capital Funding and How to Secure It

The Startup Magazine

It is possible to attract a venture capital partner with an idea for a business, but most deals are closed after the business has a founding team , a minimum viable product or MVP, and customers. Understand VC Term Sheets. A venture capital term sheet is a “non-binding listing of preliminary terms for venture capital financing”.

article thumbnail

Can Your New Venture Pass The Scrutiny Of Investors?

Startup Professionals Musings

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. Contact key vendors and existing customers. This will cover the technology, the current state of development, and customer satisfaction.

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.