Comments on: Preparing for the Next Financing Round http://alphatechcounsel.com/blog/2009/preparing-for-the-next-financing-round/?utm_source=rss&utm_medium=rss&utm_campaign=preparing-for-the-next-financing-round Legal and Business Issues for Entrepreneurs and Emerging Companies Fri, 23 Jul 2010 12:38:34 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Al http://alphatechcounsel.com/blog/2009/preparing-for-the-next-financing-round/#comment-39 Al Thu, 15 Oct 2009 15:31:26 +0000 http://alphatechcounsel.com/blog/?p=198#comment-39 Good list. Thanks! Good list. Thanks!

]]> By: Matt Storms http://alphatechcounsel.com/blog/2009/preparing-for-the-next-financing-round/#comment-37 Matt Storms Fri, 11 Sep 2009 02:11:09 +0000 http://alphatechcounsel.com/blog/?p=198#comment-37 Generally yes, the time frames are similar--angels and angel groups are perhaps a little quicker because less diligence is typically done. For both angels and VCs, for those actively looking to invest (and obviously there are fewer currently), they have more deals from which to chose, are in less of a rush to close, and have a higher expectation of getting a "deal" than historically has been the case. Most companies are shopping their deal quite a bit longer than was the case a couple of years ago. I'm sure situations, regions, industry niches, etc. vary somewhat, however, and my comments are only general observations/suggestions of current trends/best practices. In terms of your 6-8 months comment, I agree. In addition to those outlined in the post, here are some additional thoughts on expediting your next round of financing: develop relationships with prospective investors well in advance of looking for money; develop "a history" of setting milestones and timely meeting those milestones (e.g., tell a prospective investor, I'm going to do x, then communicate to the investor once you've accomplished x); get solid, warm introductions to active investors interested in your niche, etc. Hope that helps. Generally yes, the time frames are similar–angels and angel groups are perhaps a little quicker because less diligence is typically done. For both angels and VCs, for those actively looking to invest (and obviously there are fewer currently), they have more deals from which to chose, are in less of a rush to close, and have a higher expectation of getting a “deal” than historically has been the case. Most companies are shopping their deal quite a bit longer than was the case a couple of years ago. I’m sure situations, regions, industry niches, etc. vary somewhat, however, and my comments are only general observations/suggestions of current trends/best practices.

In terms of your 6-8 months comment, I agree. In addition to those outlined in the post, here are some additional thoughts on expediting your next round of financing: develop relationships with prospective investors well in advance of looking for money; develop “a history” of setting milestones and timely meeting those milestones (e.g., tell a prospective investor, I’m going to do x, then communicate to the investor once you’ve accomplished x); get solid, warm introductions to active investors interested in your niche, etc.

Hope that helps.

]]> By: Jake http://alphatechcounsel.com/blog/2009/preparing-for-the-next-financing-round/#comment-36 Jake Wed, 09 Sep 2009 16:41:03 +0000 http://alphatechcounsel.com/blog/?p=198#comment-36 Are you seeing the same time frames for angel investors and VCs? 6-8 months is a long time. Are you seeing the same time frames for angel investors and VCs? 6-8 months is a long time.

]]>