RT Journal Article
SR Electronic
T1 Raising the First Round of Venture Capital: <em>What Founding Teams Should Understand</em>
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 9
OP 12
DO 10.3905/jpe.2012.16.1.009
VO 16
IS 1
A1 Fred Dotzler
YR 2012
UL https://pm-research.com/content/16/1/9.abstract
AB This article intends to shed light on the process and increase the probability of a successful fundraising effort. Founders of a startup should prepare for the initial fundraising before contacting carefully targeted prospective investors. When meeting with these funds, the team can ask the funds to explain the steps the fund will make in deciding whether or not to invest. The startup team should: pay close attention to what is being said and done by prospective investors; not waste time on those prospects who do not appear engaged; and solicit more than one term sheet so the company is not forced to accept undesirable terms.TOPICS: Private equity, equity portfolio management, manager selection