One burning question in the mind of the capital seeker, since the dawn of time has been, how long does it really take to get a funding done? Now, in my 25 years, being on both sides of the fence as a capital provider and also as a capital seeker, I could tell you ultimately, plan on about six months. It could take longer, rarely does it take shorter.
Now, there are eight key steps in the process and being aware of those will help you understand the process and the time.
The first thing that happens, typically, is a review of the business and an evaluation of your financials. This is the point where the capital provider is making a decision on whether they want to interview you and take some further time up for consideration.
Number two, there's going to be a meeting and a presentation. Typically this one is going to be done in person and it is what we call a "dog and pony show." It is where you present your company and parade the merits of it in front of the capital provider. The capital seeker then will find themselves in a due diligence period. Now, this cuts both ways. They're doing due diligence on the capital seeker, our investors want to know, are all the facts there? Is everything in line? Do a little homework, check some facts. You should be doing the same thing as a capital seeker while they are doing there's, know who you are dealing with.
Number four, there is going to be a series of follow up questions, ultimately. You need to be prepared to answer those.
Number five comes; finally a term sheet. This is a first take, or draft, at a letter of intent to provide the funding and it will spell out: what are the terms of the funding, what type of funding equity get, what have you.
And number six, what always follows a term sheet is a negotiation. Because you never, as a capital seeker, want to take the first deal that's put on the table.
Number seven is, after negotiations conclude, typically there is a formal agreement.
And number eight is the closing. So, there are a lot of steps that you go through on the way to being funded. Being aware of those will help you to understand the time that is involved with that.


for more info contact edward cambas at edward@capitalmatchpoint.com