Founders Introduction to Venture Capital Fundraising Part 2 | John Colley | Skillshare

Playback Speed

  • 0.5x
  • 1x (Normal)
  • 1.25x
  • 1.5x
  • 2x

Founders Introduction to Venture Capital Fundraising Part 2

teacher avatar John Colley, Digital Entrepreneurship

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

18 Lessons (41m)
    • 1. How to Attract and Engage Investors Section Intro

    • 2. 11 How Venture Capitalists Make Money?

    • 3. 12 How Angel Investors Make Money?

    • 4. 13 Additional Benefits from Venture Capital

    • 5. 14 What does an Investor Look for?

    • 6. 15 How Can You Identify Relevant Venture Capital Investors?

    • 7. 16 How to get yourself on Investors Radar

    • 8. The Investment Process Section Intro

    • 9. 17 Investment Process - First Meeting

    • 10. 18 Investment Process - Pre-Term Sheet (4 Weeks)

    • 11. 19 Investment Process - Post Term Sheet (2-4 Months)

    • 12. 20 Key Deal Terms Section Intro

    • 13. 20 Types of Investment

    • 14. 21 Term Sheet Deal Terms

    • 15. How To Choose the Right VC Section Intro

    • 16. 22 How to Choose the Right VC

    • 17. 23 Choosing the Right VC

    • 18. Summary and Wrap Up

  • --
  • Beginner level
  • Intermediate level
  • Advanced level
  • All levels
  • Beg/Int level
  • Int/Adv level

Community Generated

The level is determined by a majority opinion of students who have reviewed this class. The teacher's recommendation is shown until at least 5 student responses are collected.





About This Class


Are you new to the complex and confusing world of venture capital finance? 

If the answer is YES, then congratulations you are in the right place. 

My name is John Colley and during over 30 years of investment banking, I have worked with hundreds of startups, entrepreneurs, founders and venture capital firms.   My goal here is to share some of that experience with you to enable you to understand how Venture Capital finance works…

This course is designed with you, the Founder Entrepreneur, firmly in mind!

Lets start by asking some key questions…

  • Is your business right for Venture Capital finance?
  • What are your equity and non equity financing options?
  • What are the Pros and Cons of Venture Capital finance?
  • Do you understand the Stages of Investment?
  • How should you attract and engage investors?
  • What should you know about deal structures and the investment process?
  • What are the key Deal Terms you should be aware of?
  • Summary - how to to choose the right Venture Capitalist for your business?

If you have any questions or issues, you can reach out to me here. I do my best to respond to student questions promptly.

Enroll Today!

See you inside the Course!

Best regards


Business Courses From John Colley You Might Enjoy

Accounting: Understanding Financial Statements -

Mergers and Acquisitions The Essentials You Need to Know -

Investment Banking 101 - How to Evaluate a Crowdfund Opportunity -

Investment Banking 101: How to Maximise the Sale of Your Business -

Start Up Essentials Advice New Founders Need to Know -

Founders Introduction to Venture Capital Fundraising Part 1 -

Founders Introduction to Venture Capital Fundraising Part 2 -

Venture Capital Liquidation Preferences – Critical To Your Success -

How To Find A Venture Capital Investor and Negotiate a Term Sheet -

How to Create a Winning Presentation for Venture Capitalists -

Private Equity 101 - Entrepreneur's Guide to Private Equity Capital Raising -

Marketing Courses

Digital Marketing Blueprint - Design Your Own Digital Business -

Meet Your Teacher

Teacher Profile Image

John Colley

Digital Entrepreneurship


Exceed Your Own Potential! Join My Student Community Today!


Do you have Skillshare Premium?

Skillshare Premium is required to watch most of my courses because it gives me the chance to earn money based on every minute you spend watching. You learn and I get paid we both win and it encourages me to produce more content for you. The Skillshare Premium subscription that gives me unlimited access to thousands of Skillshare courses all for free for the first month and then $96 a year after that which is just $8 per month! You can watch anything you like and as much as you want how awesome is that? Want to get 2 months FREE then sign up at because Skillshare will give... See full profile

Class Ratings

Expectations Met?
  • Exceeded!
  • Yes
  • Somewhat
  • Not really
Reviews Archive

In October 2018, we updated our review system to improve the way we collect feedback. Below are the reviews written before that update.

Why Join Skillshare?

Take award-winning Skillshare Original Classes

Each class has short lessons, hands-on projects

Your membership supports Skillshare teachers

Learn From Anywhere

Take classes on the go with the Skillshare app. Stream or download to watch on the plane, the subway, or wherever you learn best.


1. How to Attract and Engage Investors Section Intro: Now I want to talk to you about how you attract and engage investors. We're gonna have a look and see how founders entrepreneurs start up. Businesses can attract and engage with angel and venture capital investors. To start with, you need to understand their business model. You need to understand how they make money because if you understand that, you'll be able to go and tell them how you're going to make money for them on. I'm going to do that both for Angels and for venture capital investors. Next, I want to help you to have a conversation with your potential investors that goes beyond money so that you can show them that you're thinking strategically about the relationship. And that's why we're going to spend a certain amount of time discussing the benefits that these investors come bring to your business. In addition to just the pound notes, I don't want to show you what venture capitalists are looking for in your business, the strategic boxes they want to be able to take so that you can show them that those boxes can be ticked really important because this will help you to make the right impression when you pitch to them. Finally, I'm going to share you. Share some thoughts with you about how you screen to find the right investor and get yourself onto their radar, ideally before you need the funding. So that's what we're going to discuss in this section how you can go about attracting and engaging with the right investors. 2. 11 How Venture Capitalists Make Money?: how to attract and engage investors in this next section, we're going to take a look at how founders entrepreneurs and start up businesses can attract and engage investors. How venture capitalists make money. Let's take a closer look at how venture capital firms make their money. We need this understanding if we are to position a business for investment from them. A venture capital fund typically works on a 10 year cycle for fund and raises a new fund every 2 to 4 years. In the first stage of a fund, investments are made typically 10 to 20 per fund, with additional capital being held in reserve for follow on investments or further investment stages. Funds rarely invest mawr than 10% of a particular fund in one business and often are unable to invest from more than one fund in one business. So even if the venture capitalists have to current funds, they cannot cross invest into a single Invest e company. The reason for this is largely centered around the potential conflicts of interest, which may arise between the two funds. Venture capital works on a portfolio approach to investing, although they screen hundreds of potential investments and invest seldom in more than one in 100. They still only expect relatively few of their companies to really make them a large return . As a rule of thumb, if a venture capitalists invest in 10 businesses, they expect to lose money on four of them, break even or make a small return on form or and make a large return on just two off the 10 they earn their money in two ways. Firstly, they charge a small management fee on the funds raised, which basically pays their fixed costs on base salaries. They mainly earn their money from their carried interest in their funds, which is normally around 20% of the profit on the investment, which is calculated on the basis of the total return from the investment, less the total amount invested from the fund. 3. 12 How Angel Investors Make Money?: how angel investors make money. Angel investors invest their own money. They also invest smaller amounts at a much earlier stage. This is also, of course, a higher risk investment. As a rule of thumb, whatever an angel seeks to invest, they seek around 20 to 30% off the equity. This effectively defines the pre money valuation. The reason for this is that they expect there will be further funding rounds. Although these are at higher valuations, the Angels will still expect to be diluted by the later funding. They're typical. Investment size is around 50,000 to £250,000 at valuations in the range of 500,000 to £4 million. If a company exits relatively quickly, they can make two times 25 times their money. Alternatively, if the company goes on to scale, they end up with a small equity stake in a much larger business, which can ultimately provide returns well in excess of that range. Although by this stage their influence in the company is very limited. One consideration when selecting angel investors is to understand the extent of their own networks. This can help you to attract other angel investors who they may be able to introduce you to . In addition to this, they may have long standing relationships with venture capital firms with whom they may have co invested in the past. It is always worth questioning them to see if they can help you to find more investors using their network. 4. 13 Additional Benefits from Venture Capital: additional benefits from venture capital. I want to preface this by saying that when agreeing terms with venture capital investors, you must do everything you can to ensure that your interests are aligned so that there are no conflicts of interest when it comes to making key decisions about the future of the business. Furthermore, they will seek to get as much downside protection and upside benefit as they can negotiate into a deal. And it is your responsibility and that of your financial and legal advisers to ensure that what they demand and argue for is balanced and fair. That, having been said, you should consider that potential venture capital investors can offer more than money. And when you are negotiating to select them for your business, these are some of the additional benefits you should be looking for from them in the short and long term on a day to day level. The small team from the venture capital firm, one of whom at least will be on your board, are an excellent source of tactical and strategic advice. They are likely to have worked closely with a significant number of young companies like yours and will be familiar with many of the day to day challenges you are facing when it comes to hiring, particularly for the higher level appointments. Venture capital firms have extensive networks off their own. When you are looking for skilled developers, country managers, key sales personnel, even C suite and advisory board appointments, I recommend discussing potential candidates with your venture capital team and asking them for any appropriate nominees they wish to put forward. You need to appreciate that. For a venture capital firm, their extensive network is extremely valuable to them, not the least because it can be a source of off market deals, which they absolutely love. It is up to you to turn this to your advantage. Partnerships with other companies can be initiated by venture capitalists. While current in Vesti firms are not likely to be a source of partnerships in the wider corporate world and internationally, venture capitalists will have a perspective on potential partnership opportunities, and you should encourage them to think how these might help your company. Most venture capital firms have someone internally responsible for PR marketing and social media coverage. They will be delighted to announce their deal with you, but why stop there when you have significant milestones report, get their team involved Sharing the news with the world. They should be more than happy to help with this, as it will all contribute to helping to secure a better exit valuation. In the longer term, having a higher PR profile will also help them to find potential acquirers and encourage investors in your next funding round. Venture capitalists can also help directly with further funding. At one level, you may both feel that some debt would help the business at a particular point on, they will understand how to negotiate and structure any lending with a bank. This is likely to be specialist venture debt rather than commercial bank lending. Unless your business has assets that can be pledged as security against a commercial loan. They will also have a network of co investors who will be happy to consider an investment in your business Once they see the venture capital firm committed to you, internationalization can be a challenge for a growing business. Entering a new geographical market is not without considerable risks. If your venture capital firm has a presence in that market, this should provide you with options and help you when taking the step yourself. Don't ignore your venture capital firms relationship in the advisory sector. They will have established relationships with lawyers, accountants, financial advisory firms, PR recruiting, etcetera. They can help you with trusted referrals and may in some cases be able to negotiate preferential terms. Don't forget, it's their money to. Finally, when it comes to exit, you need a little help you can get. Venture capital firms will have considerable experience in these deals. They will have contacts and market knowledge of potential buyers. And Justus, importantly, will have experience off the process. You will appreciate having them on your side of the table when it comes to negotiating the heads of terms or memorandum of understanding with the buyers. It's a this point that you find out whether you really have got your mutual interests aligned 5. 14 What does an Investor Look for?: What does an investor look for? This could be summarized as the Three Teas team technology traction venture capital investor who reviews your business will, Broadly speaking, be looking for these three key aspects of your business. They will rate them on some kind of scale. Essentially, they are looking for exceptional qualities in at least one of these, if not exceptional, they will grade them as good stroke, credible or mediocre stroke in complete, the business has toe have at least one aspect that really makes it stand out without this just being credible in all three, they will not invest as they will not have a sufficiently strong differentiating factor around which they can build a competitive business. You must remember as well that you are being evaluated against hundreds of other opportunities. It's fair to say that veces look at around 500 deals a year and invest if they are lucky in five. That gives you starting odds of 100 to 1. If you can be rated as exceptional in at least one aspect, then the others can often be developed later 6. 15 How Can You Identify Relevant Venture Capital Investors?: How can you identify relevant venture capital investors when deciding who to approach? You need to do your homework. Firstly, start with venture capital firms in your city and work out from there. If you're looking for an investment up to Siri's A. Don't think about going overseas unless you are a really specialized niche technology business. Geographic proximity is important as the venture capitalists want to be able to be in regular contact with their companies on That means coming to see you. If you are in the UK and the investor is on the West Coast, that is not going to be easy. Make sure that your business matches their investment stage, investment size sectors and sub sectors. Andi that you meet their geographical criteria. Some funds are regional, for instance, and if you are not based in their region, they are not going to be able to invest. Take a look at their existing portfolio. Does your business fit in a key red flag is to check whether they have invested in any businesses that might compete directly or even indirectly with you. As part of your due diligence, you should ask to speak to the founders of some of the companies they have invested in, find out what they're like to work with. Were they fair, particularly? How did they behave when things did not go to plan? You are setting out to form a business relationship that could last five years. You want to make sure that it's going to be a happy marriage. Take a look at their track record. As we have seen, there is much venture capital firms conduce to help, and the results speak for themselves. You want to work with winners, not also rans. Finally think about the venture capital firms own life cycle. Do they have funds ready to invest if they are coming to the end of a fund, all they are raising their next fund, they won't be able to invest in your business when you need them. But they always like to be in the flow to know what deals out there. So they are still likely to accept a meeting or two with you, which, from your perspective, will be a complete waste of your valuable time. Used these criteria to create a short list work on the rifle principle. Don't expect a shotgun to be effective. This approach also works with angel investors. Use the Internet and investor sites to screen and track potential angel investors and build your short list with due care and attention. 7. 16 How to get yourself on Investors Radar: how to get yourself on Investor's radar. The old adage. If you ask for money, you get advice. If you ask for advice, you get money is more often true than not. Your fundraising, ideally, should start last year. The next best option is for it to start today. What I'm saying is that you need to be building your relationships with the investment community long before you need them. Just sending out a series of emails to investors is a high risk strategy. Sending a few emails to people you already know is much more likely to be successful. So how do you build this network in advance? Firstly, examine your existing networks and those of your fellow founders. If you don't already have direct contacts, do you have indirect contacts? One of the easiest ways to check this is toe work through Ellington to see who your network knows I e. Your second degree contacts and then get them to make the introductions for you. Do you know anyone in their investing firms? Do you have contacts in the advisory industry? Lawyers, accountants and financial advisors? Ask them who they would recommend and then follow up with a warm introduction get engaged in active online communities. This can often be more work than it's worth. Attend events and conferences. If you go to an invent and attend a session where there is someone you want to meet, make sure that you ask a question at the end and then afterwards go up and follow this up with them in person. They will always talk to you as they will remember your question from just a few minutes before. When asking your question, always preface it by giving your name and that of your firm. Keep your own PR and marketing efforts current around your product. When you make an approach, you can be sure that they will do a search for you and your company, and you want them to discover lots of positive content about you when they do this. Finally, remember that above all, venture capital firms want to invest in businesses with momentum. If your product already has traction with customers, is already making significant sales and growing quickly, your investment pitch will speak for itself. Venture capital firms spend a great deal of time looking for businesses with momentum, and if you have it, they may come looking for you 8. The Investment Process Section Intro: we're going to take a look now at the investment process. I could actually create a course on this whole process in its own right. But in this introductory course, I think it's important if we spend a little time discussing the three main stages off the investment process. Now, if you find this helpful, what I do recommend you do is you take this and use it as an agenda to discuss this process with your legal and financial advisors, and they will be able to flesh this out for you in a lot more form. Now, the format I've taken for this is everything you need to do on the preparation you need to make to get to the first meeting. The process, then between the first meeting and effectively getting the term sheet issued on signed off on then the process after the term sheet has Bean signed, which is basically that the stages through due diligence on documenting the whole deal up to the closure of the deal on the issuance off the investment. So those are the three stages on. We'll take you through them fairly quickly, but give you enough information on them so that you'll get a good idea about how the whole investment process works. It's important you do know what's coming up. You do know how long it's gonna take and therefore you can prepare yourself as well as possible to make sure that your investment process is as efficient Andi as at least the least painful it can possibly be. 9. 17 Investment Process - First Meeting: deal structure and investment process. There are three stages to an investment deal. The first meeting the pre term sheet on the post term sheet. The first meeting for the first meeting. You will not need a long and detailed business plan or a complex financial model to get the initial attention. Often, investor Ah, one or two page summary of your business on the investment opportunity makes it easy for them to assess whether they want to look at you and your company. Further, this is called a teaser or a one pager. You will also need to prepare a presentation or pitch document. This is best summarized as a 10 2030 document, 10 pages, 20 minutes in 30 point fund. This is your rifle shot explanation of why your business is the one they should invest in. The information in this document should include product market business model, the team, your competition product, roadmap, technology overview, business development plans, financial status funding requirements and uses of funds on milestones 10. 18 Investment Process - Pre-Term Sheet (4 Weeks): pre term sheet four weeks. Assuming that this initial meeting is successful, you can expect a dialogue to develop, punctuated by a series of meetings. The investors will want to carry out initial due diligence by speaking to your current customers and business partners, suppliers and distributors where applicable. They will seek an opportunity to meet a wider range of your team, not just the founders and the board. They will be looking to get a sense of the quality of the people on the ethos and culture of the business. Expect them to challenge your strategy and plans, which should helpfully include their criticisms and commentary on your goals and maybe even some helpful suggestions for improvements. If you have any gaps in your key team, finding the right hires will be an important goal after the investment, and they will want to explore how you are going to do this. Finally, before getting the sign off for the investment, you will have to formally pick your business to the investment committee off the venture capital firm Angel. Investors are likely to have a less formal process. This committee makes the final go no go decision. If you are successful, the investor will provide you with the term sheet, explaining in outline the basis on which they are prepared to make an investment. There is limited scope to negotiate these terms, and your best chance of doing so is to have two competing venture capital firms seeking to invest in any event, this is where your financial and legal advisers earn their fees, particularly make sure that you have a lawyer who is experienced in these kinds of deals. 11. 19 Investment Process - Post Term Sheet (2-4 Months): post term sheet 2 to 4 months. Once you have agreed, the term sheet due diligence begins. This is a detailed review of the whole of your business, for which you will need to have prepared a data room where all the information is collected together. To make the process faster and more efficient, expect lots of questions and requests for additional material and information. There will be additional referencing of your customers and partners as well as the core management team. The investors may require an accounting review to make sure that the historic numbers stack up and feed consistently into the financial model. Going forward, venture capital investors often create their own financial model and work hard to challenge inputs and assumptions. In parallel with this, the documentation phase of the deal will be set in motion. At its core is the investment agreement, which sets out the detailed terms of the deal. There is also likely to be a shareholder agreement which sets out the terms of the partnership going forward after the deal, as new classes of shares are often created, you may also need these to be documented and your memorandum and articles to be updated 12. 20 Key Deal Terms Section Intro : Now we're going to take a look at the key deal terms. It's important that you understand the key terms off the deal they are signing up to on the sorts of investment structures they're gonna put in front of you. Because unless you understand these, then they're gonna your attention. Investors are gonna have one over on you. Now, I know that reading term sheets and investment agreement so I know from experience can be very confusing, particularly when they're written by lawyers. Now, I'm not going to take you through all the legalese. But the challenge for you is to understand the key terms in these agreements, what these terms are trying to achieve and why they are important. And if you get your mind around that, then you are probably going to be a head off many of your other competitors. I'm going to touch on them relatively briefly, but hopefully leave you with enough understanding to at least ask more detail questions of your legal and financial advisors. So we're going to take a look now at some of the key deal terms that you're likely to be presented with 13. 20 Types of Investment: types of investment. There are essentially three types of investments. Ordinary shares, convertible loans and preferred shares. Ordinary shares. This is the simplest form, simply investing alongside the founders in a further issue of the existing ordinary shares of the company. This is most often what Angel investors will seek to do. It keeps everything straightforward, as all investors and founders have the same rights and interests. Board composition is often adjusted to include new, significant shareholders. Convertible loans. These can be used by both Angels and venture capitalists. These loans convert into equity normally with a discount into the next round of funding. These could be useful is a short term measure ahead of a planned funding round the investors Downside risk is mitigated as the loans rank ahead of equity. Should there be a liquidation event preferred shares. These are typical of venture capital, but can also be used by larger angels when investing as a group. This creates a new class of shares with preferential rights over the ordinary shares. Hence the name 14. 21 Term Sheet Deal Terms : term sheet deal terms. I want you to be briefly aware of some of the terms you can expect to see in a term sheet, and I recommend that you discuss these in detail with your advisors before signing up to anything. Firstly, the investors were set out the basis off their investment fund. A. Proposes to lead a series a preferred share financing off £10 million at a pre money valuation off £15 million. After this comes a Siris of key terms, which are briefly summarized to help you understand their purpose. Employees Option pool nearly always expected to be created to provide equity to incentivize existing and future staff in the future. This is done before the investment is made so that the venture capitalists investment is not diluted by the creation of the option pool capitalisation table. A cap table is always attached, sharing the pre investment and post investment position off all shareholders and the position of the option pool. This saves any ambiguity later board representation. The investors always expect Toe have board representation on may ask for the right to appoint a non executive chairman of their choosing to head the board liquidation preferences. This explains how their class of shares are treated in the event of a liquidation event. This is predominantly downside protection, but this is a critical clause toe, which I have dedicated a separate course which needs very careful scrutiny. Participation rights. These enable the investor to get their money back first as preferred investors ahead of the ordinary shareholders, and then participate as ordinary shareholders in the remaining economic benefits arising from the liquidation event this is sometimes referred to is double dipping anti dilution rights. These protect the venture capital preferred shareholders in the event that the next funding round is done at a lower price. This is normally done by lowering the conversion price of the preferred shares into the ordinary to the lower price set by the new share issue. This protects investors from being diluted by a down round vesting. This is designed to guarantee that the founders and key employees remain committed to the business, normally for a minimum of four years. What vesting means is that an employee shares do not belong to them from day one. Normally, unless they complete a minimum of one year, none of the shares will best thereafter, they started 25% and additional shares vest on a month by month basis. This also helps to protect the other founders as well as the venture capitalists. As an early leaver does not have the right to take all their shares with them control and veto rights. The shareholder agreement will set out in detail the term sheet in outline the veto and control rights, which the investors obtained as a result of their investment. This also normally includes a right to fire any of the founders or leading employees if the company does not prosper. A key term aligned to this are the good lever bad lever provision, which also require close scrutiny and negotiation period of exclusivity prior to closing. This is normally between eight and 12 weeks and gives the investors an opportunity to negotiate document and close the deal without further distraction from competition. The deadline also ensures that there is an end date set for the process, which will at times feel interminable costs. Be aware that venture capital investors normally seek to recover their due diligence and deal costs from the deal proceeds if the deal does not close the company can still end up with an unwelcome bill confidentiality. Both sides are normally bound to keep the deal confidential. It is normal to issue a press release when the deal is signed. 15. How To Choose the Right VC Section Intro: Now I want to try to bring a lot of what we've discussed together to help you, to see how you might go about choosing the right venture capital investor for your business . So we're gonna pull the threads off the discussion so far into some sort of cohesive whole , so that you can start to think about the right way to choose a potential venture capital investor. One of the ways I'm going to do this with you is I'm going to show you what is called the Entrepreneurs equation, which I'll explain in the video which will come up after this on This is going to help you to set some objective benchmarks by which you can judge Venture Capital's on their investment proposals against what you need to get out of the deal. It's quite a useful formula, and I think you'll enjoy thinking about it. The main point is that this whole exercise is mawr than a financial investment. What you're looking to do is make an informed choice about finding the best investor at a fair price rather than the wrong investor at the best price on its a qualitative not just a quantitative quantitative evaluation. And what's more important, you're making this judgment based on the relationship you want to form over quite long term on which is going to require a considerable commitment from you. So it's very important that you get it right. So we're going to discuss now how to choose the right V C. 16. 22 How to Choose the Right VC: how to choose the right V. C. The biggest mistake you can make is to select any partner at the best price rather than the best partner at a fair price. The content we have covered should help to guide you when considering which venture capital partner to select. But let's review a few key criteria here. The Entrepreneurs Equation. Let's start by setting out the entrepreneurs equation value at exit multiplied by probability of getting there multiplied by share off business at exit value at Exit. The factors governing this part of the equation are revenues and profitability. Growth rate, team quality strategic fit with by a community, onda well managed exit process. You need to give consideration to all these factors in trying to maximize the value of your business at exit probability of getting there off course. If the probability is zero, the total sum is too. This is what you need to consider when trying to maximize your chances off getting to an exit. Fewest strategic errors made. Hiring quality and speed partnerships, product development, cash flow, management percentage share off business at exit. Finally, let's take a look at the third part of the equation percentage share off business at Exit. This is affected by company valuation in the initial round valuation and dilution in subsequent rounds, option grounds and negotiated terms with investors. 17. 23 Choosing the Right VC: choosing the right BC Taking into account everything that we have covered so far, we can summarize the factors you should take into account when choosing your venture capital partner as follows relationship with the key individuals you are going to be working with on their broader team. First and foremost, this is going to be a long term and close relationship, so you want to make sure you like each other references. Make sure that you check them out with other founders. Make your own selection of people you want to speak to. Don't just accept a short list of their best relationships. You particularly want to know how they perform and behave when things go wrong. Portfolio. There has to be a good fit with your business. Is this a community you want to be a member of? Remember to avoid any venture capitalists who have already invested in competitors of your business, make sure that they have the relevant experience of your sector and business model toe. Understand what you do and be able to help to make it successful. Valuation and deal terms only if all the factors above are right. Should you turn your attention to valuation and deal terms. These, of course, have toe work, too. And this is not an excuse to persuade you to accept a poor valuation or owner of steel terms, but don't form a partnership unless all of these factors work for you. 18. Summary and Wrap Up: So here we are at the end of the course. Andi, we've got to the summary and wrap up. It's the part I like the most because it tells me that you've gone all the way through the course on. Hopefully you've been able to absorb a lot of the information that I shared with you. So a very, very warm Congratulations on completing the course. I really, sincerely hope it's provided you with some useful insights into the world or venture capital investing on that. This is going to help you in your business. Let's have a quick wrap up, then off the topics that we've discussed in the course. First of all, I posed the question. Is your business right for venture capital finance? And we discuss that in a little bit of detail. I then took you through some of your equity and non equity financing options so that you could evaluate which is the best for your business and not just assume you're gonna shoehorn yourself down the venture capital route. If you are going to consider venture capital investment, then I wanted to show you the pros and cons off this type of finance to make sure that you were going in with your eyes open. The step that followed was to look at then the different stages of investment so that you could make sure that you are matching the stage that your business is that with the stage of investment that particular investors were addressing Andi. Then I took you through how you could attract and engage with these potential investors. We then looked at deal structures on the investment process to make sure that you understood how this process was going to be worked. And at the very least, you had enough information to go and have an informed discussion with your financial and legal advisers. I wanted to make sure you were aware of some of the key deal terms that you were going to come up against. We didn't have time to go into a full term sheet, but if you've got these these points that you can put on agenda again, you can have amore informed discussion. And it's important to understand at least the headline of what these terms are, what they are trying to achieve and why they're important. And if you can get your mind around that, then you're at least on a starting point toe, have some sort of negotiation. Finally, we had a discussion about how you could go about choosing the right investors, the right venture capitalists for your business. And I hope you found that summary at the end was a helpful drawing together of the different threads. Now, if you've got any questions or issues you'd like to discuss with me, please reach out. Message me, and I'll always do my best to help you. Good luck with your business on Good luck with getting the funding that your business needs with the right investors.