Wednesday, December 31, 2008

How Long does it take a Company to get funded by Investors or VC companies?

That is a question that every company wants to know  right a way. And the answer is not so simple.
The company should have all documents necessary to present to Investors, (there is a lot of information on www.fundsforprojects.com on what documents you need) whether Angel or VCs.
Most companies think they have all paperwork required, however their interpretation for instance of what financials are, and what an Investor wants to see are two different things.
Year to date financials to an Investor are P & L, Balance Sheets, with all details. How you spent money in prior years, will reflect to them how you will spend their money. Did you purchase unnecessary items for the company with money from prior investors, are you taking big salaries while very little is spend in marketing? All of these reports will give Investors a feeling for how you manage money.

If you have all the documents ready, the process can take anywhere from 2 to 6 months. 


 

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