How Is The Venture Capital Investment Process? Here's The Review

Getting funding to develop your startup business is certainly the biggest desire for you right? Yes, for startup companies, developing their business so they can compete with big startup companies is not easy. Need enough capital so that your startup can adjust to the situation.

What is called venture capital?

One way you can get this funding is by utilizing venture capital companies. Venture capital or VC is a company that was formed for the purpose of providing funding to a newly built startup company to become a big startup.

As a reciprocal for investments made by venture capital, usually they will be given a number of shares from the startup company. Usually the number of shares given is greater than the value of the investment issued. But the funds issued by the venture capital company came from third parties or known as limited partners.

Limited partners themselves usually come from wealthy entrepreneurs, shareholders and owners of successful family companies. In the hope that they will benefit from investments made to venture capital. In short, venture capital is actually in charge of channeling funds.

What is the process of venture capital investment


There are several steps taken by Indonesia VC in making investments. For more details, you can listen to the reviews below.

1. Submit a business plan
   The first process that must be known by startup owners who want to get funding from venture capital is to submit a business plan first. This is very important because later it can be used as an initial stage for VCs to assess the company you have.
   
   The minimum format that you must include when making a business plan is to make a description of your startup opportunities to get the market from your business. The background of what you have and what experiences the company has. In addition, it explains the details of how the financial process is also quite important.
   
   Later after the venture capital accepts the submission of your business plan, they will conduct an internal discussion and decide whether your startup can enter the next stage or not.
   
   If you are not contacted for a long time, then you cannot just give up. You can look for other venture capital.
   
   • Process of meeting or introduction
     If the business you submitted has received approval, you will get an offer to meet with venture capital. They will contact you to discuss your business in depth.
     
     Usually this process will be done using a telephone connection. This will determine whether you will enter the due diligence stage or not.
   • Due diligence
     If you are accepted to the next stage, you will find a due diligence process where this is a process that also presents a fairly fierce competition. Usually it also has a time duration that varies depending on the proposal you submitted. You will also receive many emails, telephones, interviews and more.
   • Agreement and investment documents
     If you have passed to the next stage. You will enter the agreement document stage. Where this is an unbound document which explains the terms and conditions in the investment agreement.
     
     This is the process of obtaining funding from Indonesia VC . Well if you are looking for a trusted and professional VC, Convergencevs.com is the best choice.