What are the common financing processes for start-ups

BP: Write a business plan and deal with investors or investment managers who don't know when they will meet. Writing a business plan is not only a process of packaging and expression, but also a process of sorting out product ideas.

2. Find investors.

3. Roadshow: Participating in organized roadshows gives you the opportunity to meet many investors at once, which can save a lot of costs. At the same time, this roadshow can let you get in touch with other entrepreneurs, and it is also a good channel.

4. Interview with investors alone: roadshows leave a good impression on investors. If the first impression is passed, you will have the opportunity to have a private interview.

5. Transaction price negotiation: The interview is to let investors know about your project and team. As for the specific investment or not, it depends on the gameplay, valuation, transfer ratio and carried interest, such as whether the preferred shares have voting rights and whether they are equipped with anti-dilution clauses. Good projects sought after by investors have stronger bargaining power, and striving for good products is always more useful than negotiation skills.

6. Sign the letter of intent for investment: Be sure to check the terms carefully before signing the contract, and think twice before you do, because the founder (CEO) is often the only one involved in signing the contract.

We should not only consider our own interests, but also the interests of the team, and we should not hurt our partners. It is suggested that entrepreneurs with spare capacity hire lawyers in all financing transactions.

7. Sign a formal legal document: As mentioned above, this is a formal contract rather than an agreement, so please treat it with caution.

8. Equity change: It is not a simple bilateral agreement signing. This step needs to be coordinated with the industrial and commercial bureau, banks and other institutions.

9. Capital injection: the investment is officially received.

10. Actively contact investors to report the company's status: submit financial statements and operating statements to investors at a certain frequency (monthly or quarterly).

1 1. Prepare for the next round of financing: When the first round of financing has arrived, it is time to consider the next round of financing.