CHAPTER 4

Understanding the Business Angel Investment Process

An investor makes money out of the company, not the process.

This chapter examines the investment process and the different stages that a business opportunity will progress through to a final investment deal agreement. The chapter suggests guidelines for choosing an appropriate investor, preparing to raise investment, presenting the opportunity to investors, and also considers some distinctions between business angels (BAs) and venture capitalists (VCs) in the investment deal process. Factors affecting the decision to invest are also considered. The investment deal agreement, including deal negotiation, is discussed in more detail in Chapter 5.

The Investment Process

BA and VC investors ...

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