First, after getting the outline of the preliminary business plan, read it quickly in a short time and decide whether it is worth spending time.
Second, the exchange between venture capitalists, relevant venture capitalists get together regularly to study the project proposal that has passed the preliminary examination and decide whether it is necessary to conduct an interview or reject it.
Interview If venture capitalists are interested in entrepreneurs' projects, they will invite entrepreneurs for an interview, which is the most important meeting in the whole process.
Four. If the first interview is successful, the venture capitalist will carefully evaluate the technology, market potential and scale of the intended enterprise and the governance department through strict audit procedures, including contact with potential customers, technical consultation and multiple rounds of talks with the governance department.
Verb (verb's abbreviation) clause list If venture capitalists think that the applied project has a good prospect, they can start to judge the investment form and make an estimate. Usually, entrepreneurs will get a list of terms and conditions, which will last for several months.
Generally speaking, the early venture capital is large, the potential profit is high, and the later investment risk is small, but the profit is small. Venture capitalists try to adapt their investment returns to the risks they take. Venture capitalists analyze the investment value in the next 3-5 years according to the specific situation, first calculate their own cash flow or income speculation, and then decide the risk according to the evaluation of technology, governance department, skills, experience, business plan, intellectual property rights and work progress, choose the appropriate discount rate and calculate the net present value of their venture enterprises.
After discussion, enter the stage of signing the agreement. Once the final agreement is signed, entrepreneurs can get funds. In most agreements, it also includes the exit plan.
7. After the investment takes effect, the venture capitalist will own the shares of the venture enterprise and occupy a seat on the board of directors. Most venture capitalists play the role of consultants on the board of directors. As consultants, they mainly put forward suggestions on reforming the operation mechanism to obtain more profits, regularly contact the creators to follow up the operation, and regularly review the financial analysis reports submitted by accounting firms.