At this stage you and the investor have probably negotiated a final draft of
the investment agreement. But a few issues, such as the due diligence review,
need to be resolved before you sign on the dotted line. This review is the
investor's last opportunity to take a serious look at this deal, to see
management in action and to get a hands-on feel for the company. This stage is
also your last chance to reconsider. After all, this deal is probably not
quite what you first envisioned. It's time to reassess your initial needs to
ensure there is still a good match.
In This Step
You will learn to take a careful, last look before committing yourself to a
negotiated deal. As well, you will find out more about the due diligence
review and get some tips about how to handle it. This Step will provide you
with strategies for conducting your own review of the investor. Finally, you
will explore how to maintain a good relationship with the investor.
If you need a deeper understanding of the material, be sure to follow the
links within each section.
The New Tech Story
Follow the fictional company New
Tech Distributors Corp. (New Tech) as it pursues venture financing. This
case example gives you a feeling for the "real" data and strategic
decisions you'll be facing. You can always get to it through the link on the
left menu bar.
