| When a venture firm decides it is interested in | | | | lawyer, now is the time to hire a qualified one with a |
| investing in your company, it will offer you with a | | | | background in venture capital finance. This investment |
| term sheet, which is essentially an offer letter. If you | | | | firms will require a fair estimation of your business |
| are a business owner than you conscious that one of | | | | shares and then will acquire a set amount of shares |
| your business challenges is getting your company | | | | at an agreed up price. Venture capital firms usually |
| funding. To put it simply, an investment firm will give | | | | comprise small teams with technology backgrounds |
| money to a promoting company. | | | | (scientists, researchers) or those with business |
| While this investment can be a tremendous boon to | | | | training or deep industry experience. |
| a tiny division of the companies pursuing it, in the | | | | The decision to chase venture capital is often a |
| vast majority of cases it presents the entrepreneur | | | | tempting distraction from the much more complex |
| with a "Faustian Bargain". I have come to understand | | | | and important entrepreneurial tasks of producing |
| that raising even a small amount of angel funding is a | | | | something to sell and persuading someone to buy it. I |
| challenge. Venture capital investments normally are | | | | still do not fully understand why my company, Oases, |
| high risk investments but offer the potential for | | | | has not been able to raise capital, but I think it is just |
| above average returns. | | | | a substance of finding the right investor. |
| If you have gotten to this point without a good | | | | |