The second step is to receive and check the business plan, and select the corresponding business plan from many business plans for the next communication.
In the third step, investors and entrepreneurs communicate face to face. For the unclear part of the business plan, carry out detailed and in-depth communication, and may communicate many times. Therefore, for projects from any source, you need to impress a person in the venture capital company first, and then you have the opportunity to be promoted in the company's internal system. This person may be your interview partner or investment manager.
The fourth step is internal recommendation. If the partners or investment managers you interview are moved by your project, they will recommend this project at the project review meeting held regularly within the investment company for discussion and ranking.
The fifth step is internal review and adjustment. If this project can be optimistic within the investment company and enter the forefront of the list of potential investment projects, then investors will do some preliminary due diligence on this project.
Step 6: Conduct due diligence and sign an investment letter of intent. After the due diligence personnel of the investment company investigate the project. Moreover, the company did some verification and found that the project was really good. Then the investment company will arrange negotiation and communication with the project party and sign a letter of intent for project investment.
The seventh step is the second stage of in-depth due diligence. Since the list of investment intent clauses is not the final investment agreement, the investment company will then conduct detailed and in-depth due diligence on the project, and even hire an external third-party professional organization to fully understand the company's business, finance, legal affairs and team, and verify information and data. According to the agreement or looking for the right time, the investment company sells its shares in the startup company to realize cash.
What does venture capital mean?
In fact, that is to say, everything with high potential returns is accompanied by high-risk investment. In a narrow sense, venture capital is based on high technology, and the invested enterprises are technology-intensive products.
To sum up, regarding the above issues, the above is the process of investment projects of venture capital companies, hoping to make reasonable investments.
Legal basis: These Measures are formulated in accordance with the Company Law of People's Republic of China (PRC), the Articles of Association and relevant laws and regulations, and with reference to the common practices of international venture capital industry. Article 2 The company's project investment shall comply with the following provisions:
(1) The investment principle strives for the growth and appreciation of investment projects, giving priority to projects with high technology content and great appreciation potential, and ensuring the safety, profitability and liquidity of investment funds.
(II) Allocation of investment funds: rationally allocate long-term investment funds and short-term investment funds to ensure that the company obtains sustained and stable investment.