The VC Fundraising Process: Investor Follow-up and Due Diligence

phoneKeypadIf you’re following along with our series of posts on the venture capital fundraising process, the next step in the process is to follow-up with prospective investors.

The three most important words in fundraising are follow-up, follow-up and follow-up. Venture capitalists are working on a million things simultaneously, including managing the fund and their Limited Partner investors, helping their current portfolio companies and sourcing and conducting due diligence on new investments. As such, keeping their attention focused on your deal is imperative. Don’t bug them but do be consistent and regular with your follow-up.

A focused due diligence effort will not only answer all of the investors’key questions, it will anticipate most of them.Responding quickly to a due diligence list shows your professionalism and will leave the investors with a positive impression of your company.

Here’s one more piece of advice: This stage can often involve investors conducting a site visit or calling your company’s advisors or other key opinion leaders.Having a common story between your company and your advisors ensures you leave a consistent message with the investors.