Search This Blog

Wednesday, June 16, 2010

Basic steps for raising capital (BAN or otherwise)

1. Does the business idea/opportunity make sense?
2. What are the initial deal terms?
3. Who are the 1-3 lead investors?
4. Due diligence review
5. Revise the terms per the negotiations with lead investors
6. Begin roadshow process with other investors
7. Open escrow
8. Break escrow when the minimum is raised and continue the roadshow until the offer is full

This seems to be the most consistent process and deals that have tried to skip steps tend to have a hard time.

Birmingham Angel Network, LLC's Fan Box