Especially as you reach the final stages with firms and there is still a bit of a black box around what will get the fund you are pitching to say YES.
We have broken down what founders should expect (more generally and from Concept Process) when approaching an investment committee meeting and how they can best prepare for this.
An investment committee in VC is a group of individuals responsible for making investment decisions on behalf of the venture capital firm. This committee typically includes the managing partners or general partners of the firm, and may also include other investment professionals such as analysts or associates.
The investment committee is responsible for evaluating potential investments, conducting due diligence, and making decisions on whether to invest in a particular startup or not. They also monitor the performance of their portfolio companies and make decisions about when to exit their investments
If you have managed to get to a final investment committee meeting congrats! Not many founders do and it’s likely that you have spoken to a lot of investors to get to this point = huge distraction to your business. Nailing this final meeting should be a top priority. We’ve outlined some tips below on how best to prepare for this meeting…
During a final meeting, the investment committee will review the information provided by the founder and make a decision on whether to invest in the company. The meeting typically follows a rigorous due diligence process and will include a presentation by the founder, followed by a Q&A session.
Here are some of the things you can expect during the final investment committee meeting:
It is important to note that the process and outcome of the final investment committee meeting can vary depending on the venture capital firm, but the key is to be prepared and have a clear understanding of what the committee is looking for in a potential investment.
For information on our investment process, please see our investment process section on the website here.
In terms of how we structure our meetings, we typically will block out a minimum of 1h 30 mins whether this is done in person or via zoom. We’ve outlined below the structure for our final investment committee meeting and what to expect.
The first 15 mins of our IC is spent going through introductions and a short overview from the founders presenting the opportunity. We ask this not to be a formal pitch presentation but if founders wish to present some slides this is at their discretion.
Once the founders are done discussing their backgrounds and the opportunity in greater detail, we outline a structure around an overview of topics and questions we may ask. This can sometimes lead to divergence as individuals on the committee have questions to come out of the general discussion.
The Q&A can last anything from 45 mins - 1h 30 mins depending on the number of questions that are asked.
At the end of the call / meeting we outline the next steps and will get back to the founders with a response on decision within 24 hours.
There are several online resources that can help you set up a data room, financials and pitch materials for venture capital due diligence:
These resources can provide a good starting point for creating your data room, financials and pitch materials in preparation for pitching to VCs and going through fundraising process, but it is also recommended to consult with the VC you are engaging with as to what they would expect as well as other founders who have been through the process and discussed it with them internally. The resources also house general advise on how to best approach building a startup and what you as a founder should be thinking of.