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How to get venture capital funding


There’s no guaranteed way to get venture capital, but the process generally follows a standard order of basic steps.

Find an investor 
Look for individual investors — sometimes called “angel investors” — or venture capital firms. Be sure to do enough background research to know if the investor is reputable and has experience working with startup companies.

Share your business plan 
The investor will review your business plan to make sure it meets their investing criteria. Most investment funds concentrate on an industry, geographic area, or stage of business development.

Go through due diligence review 
The investors will look at your company’s management team, market, products and services, corporate governance documents, and financial statements.

Work out the terms 
If they want to invest, the next step is to agree on a term sheet that describes the terms and conditions for the fund to make an investment.

Investment
Once you agree on a term sheet, you can get the investment! Once a venture fund has invested, it becomes actively involved in the company. Venture funds normally come in “rounds.” As the company meets milestones, further rounds of financing are made available, with adjustments in price as the company executes its plan.

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