This PPT slide, part of the 81-slide How to Prepare a Business Plan PowerPoint presentation, outlines the typical process involved in venture capital financing, structured in a sequential manner. It begins with the "Business plan," which is fundamental for attracting potential investors. This initial step is crucial as it sets the foundation for the entire financing journey. Following this, "Preselection" occurs, where venture capitalists filter opportunities based on predefined criteria, ensuring alignment with their investment strategy.

The next phase, "First visit and discussion," represents the initial face-to-face interaction between entrepreneurs and investors. This meeting is pivotal for establishing rapport and assessing the viability of the business idea. The process then moves to the "Letter of intent," a formal document indicating the investor's preliminary interest, which is critical for advancing discussions.

After the letter, "Further discussions, evaluations" take place, where both parties delve deeper into the business model and market potential. This is followed by the "Term sheet," which outlines the terms of the investment, including valuation and equity stake. The "Due diligence" phase is essential, as it involves a thorough examination of the company's financials, operations, and market position to mitigate risks.

Next, "Contract negotiation" occurs, where legal terms are finalized. The "Closing of funding" signifies the culmination of the process, leading to the "Exit" phase, which is the ultimate goal for investors, typically through an acquisition or IPO. Each step in this process is interconnected, reflecting the complexity and rigor involved in securing venture capital. Understanding this flow can aid potential customers in navigating their own financing journeys effectively.

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Entrepreneurship Business Plan Development Due Diligence Venture Capital