05.10.2009 20:06:57

Investors Network Team

As a new or growing business looking for angel finance or venture capital you need to be prepared for finding a funder prior to that actually happening. To often do entrepreneurs look for business funding without actually thinking that they may get it. So what is that you need to be prepared for and once you have chosen the individual investor or VC firms that you want to wrk with, what will be covered during the negotiations? The key to successful negotiations for venture capital is in the details of the issues coverd. These issues which need to be well defined and agreed upon will normally be as follows:

Business Valuation. The value of the business is normally the the first negotiating issues. Valuation or the price of the company in which the venture capitalist invests, most often will be very different depending on who you are asking. Valuation determines what percent of the company the investor is buying for their capital. Obviously as the entrepreneur who have put many hours, heaps of effort and often much of his/her life savings into the initial development of the business, will value the business at a much higher level than that of the venture capital firm who;s aim it will be to get as large a share of the business as possible for the money they are willing to invest.

Business angel | venture capitalist