Here’s how to structure an efficient process:
Step 1: Build Your Target Investor List
Step 2: Reach out to Target Investors and get NDA’s Signed
Step 3: Conduct Qualifying Introductory Meetings with Investors
Step 4: Conduct Early Diligence Meetings
Step 5: Get and Evaluate Term Sheets
Step 6: Select Investor(s) to go Exclusive with
Step 7: Final Diligence / Documentation
Step 8: Closing
Like any sales process, you want to keep the momentum going by setting clear follow-ups and next steps after each interaction. Each investor has different internal decision-making processes. You need to know where they are at in that process.
Let investors know the key dates, including when you expect to receive term sheets / LOIs and when you plan to close the transaction. This will keep investors moving and working towards these deadlines vs. dragging their feet.