If you’re following along with our series of posts on the venture capital fundraising process, the next step in the process is to hold a “kickoff” meeting.
Any good process needs a formal beginning and end. The organizational meeting—as many placement agents call it—gets all the people involved with the transaction on the same page. All roles and responsibilities should be sorted out at this meeting and you should formalize the timeline for the transaction and who should be doing what by when.
Who should attend these meetings?
- Company management team
- Banker or placement agent (if applicable)
- Lawyer (potentially by phone)
- Accountant (potentially by phone)
Often companies put together a fundraising plan and run it past their board of directors before starting the process. Sometimes companies establish a fundraising/transaction committee with a subset of board members who will keep in closer contact with the process than the broader board. (This is a good idea so that you don’t get more cooks than the kitchen can hold.) The level of communication with the board is generally established here and it’s important to have a clear expectation of how this communication will work.