Venture capital financed companies compete globally for customers, technology, talent and capital - from day one. Choosing financial partners is one of the most important decisions that a company has to take. Structuring a deal is mainly about creating a lasting, balanced partnership and thus about gaining confidence in each other, and not to just determine the valuation. An investment is a long-term partnership with a focus on value-adding financing and exit.
Financing a company typically lasts several months. There are a few things entrepreneurs can do to speed up the process
- The business plan is the first sales brochure distributed to several investors. It should reflect a realistic and achievable plan for execution.
- To bring up problems right from the beginning will generate confidence. No deal is perfect. The due diligence helps to get the whole picture, but should not serve as a deal killer.
- Management of expectations. The expectations of founders, management and investors should be known and aligned.