Before you approach an investor you need to think carefully about the ‘deal’. For example, do you know what type of funding you are after? At some stage you will need a confidentiality agreement.
It is important to get plenty of advice from experienced advisers so that when you meet an investor, you know what you are talking about.
There are three critical aspects to any ‘deal’:
- what type of deal? Is it equity, debt or something else?
- what will the capital be used for?
- what is the exit strategy?
Eventually you will have to ask people to sign a confidentiality agreement. This will show you have thought about confidentiality issues and helps stop people passing on valuable information without your consent.
