Chapter 10. Monitoring the Investment
Investing in a small business has been compared with getting married, and closing the deal is said to be the wedding ceremony. To carry the analogy even further, after the honeymoon is over, the investor and the entrepreneur will have to make a life together. For the next three to ten years, these two individuals will be working together, not so much on a day-to-day basis but indirectly. However, they will work together enough for it to feel like a full-time relationship.
Before you make the investment, you will have to determine how much you intend to be involved in the business. Most venture capital investment firms are not passive. Most venture firms are extremely active in the management of companies ...