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Post by account_disabled on Dec 27, 2023 22:47:46 GMT -6
Here they sell their investments to the founders themselves or to other companies. Another option is the IPO (Initial Public Offering) – the startup’s IPO . If the company fails, liquidation occurs . How does a startup get venture capital? This is usually a long and rocky road . In Germany alone, thousands of new companies are founded every year. Since financing via traditional loans proves to be difficult, especially in the startup sector, the innovative teams are looking for courageous investors. In the early phase, these are often business angels such as successful managers, managing directors or former founders. With their know-how and their manageable C Level Contact List investment , they symbolically help the startup get off the ground. In the later stages , when a startup needs massive capital to scale , venture capital companies come into play. For successful financing via VC, the startup must have made a name for itself and demonstrated initial success. The founders also have to present convincing elevator pitches at special events . to potential venture capitalists. After initial discussions there is a preliminary examination . If these are positive, the startup and the interested investor sign a letter of intent (a declaration of intent) and a term sheet (the preliminary contract). This is followed by due diligence (risk assessment), the final conclusion of the contract and the investment. New call to action Cover image: Nuthawut Somsuk / iStock / Getty Images Plus Originally published January 12, 2022, updated January 20, 2023 Subjects.
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