2018-09-18 talking to investor (steps)

Once talking to investor it is important to:
A) know about each other
B) improve the knowledge
C) increase trust
D) estimate the probability of successful investment...as no investment is the worst outcome for both due to loss of time & energy & money
E) risk mitigation
F) risk sharing

FIRST STEP

Once we get in touch with any possible investor as him/her to sign a simple NDA (Non-disclosure agreement).

It will:
A) allow you to share the data about u or company more freely
B) setup a basic framework of signing on both sides
C) increase trust
D) test both sides ability to move forward with deal.

*NDA is far away from promise to invest or even getting money. But still it is miles closer to signing a reasonable deal then pure negotiation without even this simple framework

SECOND STEP

Once u both feel familiar with data provided sign a Letter of intent. In Letter of Intent specify what is the investor looking on a what kind of data will be important for him to confirm the investment. Letter of intent is not legally binding, therefore u can not expcet this side from it (unless pointed in agreement). On the other hand it already gives a path to move forward for projection of future investment as an M&A or VC side.

THIRD STEP

MOU or Investment agreement, where u need to specify all the steps and point that will follow the investment.