Stages Of An Investment Deal

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Second stage: Closing the deal

If the first stage documents are able to impact the investor positively, you’ll begin discussing the investor’s involvement in more detail. As the relationship develops, the documents become circumstantial. This doesn’t propose you should simply provide every file to the investor in order to close the deal. Certain information, such as specific financial figures, are sensitive and you don’t want to provide this material necessary through e-mail or post.

The information and documents investors are likely requesting at this stage includes:

• The full business plan. Once the relationship is established and the investor shows clear interest towards the business, provide him or her a copy of the full business plan.
…show more content…
While the documents in the first stage are about generating interest, the second stage documents should explain the business idea thoroughly and provide the investor with reassurance that an investment deal is the right …show more content…
Some of the mentioned documents are required in case you finalise an investment deal.

Third stage: Providing regular updates about your performance

Once you’ve managed to sign an investment deal with the investor, the need to send documents doesn’t simply end. In fact, as the investor becomes part of your business, you must share regular performance updates with them. This is an essential part of nurturing investor relations and can help the business grow, as information is shared appropriately with all shareholders. If your investor is aware of the business’ development strategy and financial information, they are better equipped to enhance these aspects of the business.

The term sheet you signed with the investor will feature a list of documents you agree to provide and the means of providing these. The sheet typically follows a set of milestones, you’ve agreed to move towards and these milestones clarify the required documentation.

The regular updates generally include documentation such

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