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Process Entrepreneurs often enquire about the process of raising venture capital. Every case is unique, but this outline provides a general description of the various stages involved in the process.Step 1: Preliminary Contact Organizations may contact us to set up a 30 minute ‘no harm, no foul’ meeting. This preliminary conversation about the idea or product is meant to establish the merit of pursuing more detailed, serious discussions.Step 2: Forwarding Background Information If Step 1 is successful we'll request background material on the product and the market. In preparation for Step 3 we want to understand the problem set, the people who will pay, and other aspects of the existing space. Step 3: Face to Face (1) This meeting officially starts the process of raising capital from JLA Ventures. The objective is a clear and mutual understanding of the service or product and its potential. Standard questions at this stage include, but are not limited to:
Step 4: Development of Investment Thesis We analyze the results of Step 3 to formulate an investment thesis. The focus is on several key criteria: The people, product, and market, and a clear understanding of why this is an outstanding investment opportunity.Step 5: Face to Face (2) If Step 4 is positive, the full management team of the portfolio candidate organization will be invited to present to the full JLA Ventures team. The meeting is also an opportunity for a wide-ranging exchange of ideas and opinions on all aspects of the portfolio candidate and its business.Step 6: The Term Sheet Following Step 5, further internal review analyzes the merits and valuation of the deal. If a term sheet is issued, it will normally contain fairly standard terms and match discussions to date. This is a negotiable document and should be reviewed very carefully. A term sheet is a major milestone in any funding process and it is essential that it be on business terms that are mutually acceptable.Step 7: Detailed Due Diligence JLA will conduct due diligence to verify facts about the business includes completion of a detailed checklist by the portfolio candidate. Other elements of this stage include customer calls and reference checks.Step 8: Legal Verification The final step is legal verification by each party of all terms and agreements.Submitting your business plan If you believe JLA Ventures could be a partner for your organization, we invite you to submit your business plan for a preliminary review. We’ll read it and contact you within 10 days to tell you if we’d like to meet with you. Please ensure you include appropriate contact information. Before submitting your business plan please carefully review this site to confirm that your business fits our basic candidate criteria. Please also note that receiving your plan in no way obligates JLA Ventures to enter into further discussions regarding your business plan.
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