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- What is Venture Capital or Private Equity? |
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- What type of company does VCF like to invest? |
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- What are the Pros and Cons in having VCF as a partner? |
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- What does a VC company ("VCC") look for in a prospective partner ? |
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- How to make a business plan attractive to VCs ? |
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- Will VCs sign non-disclosure agreement, or otherwise swear secrecy ? |
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- Will I lose control of my company if I enter into an agreement with a VC? |
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- How will I know if my company is ready for a partnership with a VC? |
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- How long does due diligence process take? |
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- Are VCCs the best source of funding for my needs? |
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| Will VCs sign non-disclosure agreement, or otherwise swear secrecy ? |
VCC
intends to be long-term players in the industry; therefore,
it is extremely important that they maintain their reputation
of professionalism and confidentiality, especially regarding
projects that are proposed to them. Without this confidentiality,
they know that potential entrepreneurs may be hesitant
to propose projects to them. VCCs have set up internal
processes to maintain the confidentiality of project
proposals, and each of their staff is committed to maintaining
the security and confidentiality of project proposals.
Most VCCs will sign the Non-Disclosure Agreement ("NDA")
unless such the NDA will not restrict them in explore
other opportunities in the similar business. VCCs have
heard and will hear dozens if not hundreds of proposals.
A restricted NDA would compromise their ability to properly
review and assess each of these proposals. For example,
if a VCC were to sign an NDA on a B2B Market Exchange
proposal, such a VCC would thereafter be restrained
in hearing any other similar proposals. Apparently,
this would not be useful for either VCC or the entrepreneur
community in general. Again, please keep in mind that
VCCs have every incentive to maintain the security and
confidentiality of all projects proposed to them, and
to maintain positive relations with all those who contact
them. Consequently, VCCs are doing everything possible
to ensure this.
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