I recently wrote a post with some tips on avoiding a busted VC deal. One of my tips was to be ready for diligence before you sign the LOI. Here’s some more thoughts on getting ready.
The key to a successful and pain-free venture capital raise is to be informed, prepared, and engaged. To be informed, you need to regularly speak with bankers, VCs and lawyers that cover your space.
Start fund raising 12-18 months before you need the money. You will need that time to sift through and qualify various VCs. Also, spend a year qualifying VCs by building relationships and getting to know them well enough to qualify the ones you like from the ones you don’t. Picking a VC is not about the money (yes, all VC money is green). It should be all about picking the right firm with the culture and expertise that fit your company’s culture and aspirations.
To read the full, original article click on this link: Checklist: How to Prepare for a VC Fund Raise | OpenView Blog
Author:Firas Raouf
