Describe the steps in the VC investment process (Figure 3. 8). FIGURE 3.8 The VC investment process

Describe the steps in the VC investment process (Figure 3. 8).

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FIGURE 3.8 The VC investment process Year 0 Secure commitments from investors Development of Fund Concept Closing of Fund First capital call Generate deal flow 2-3 years Screen business plans Evaluate and conduct due diligence Negotiate deals and staging Additional capital calls Invest funds 4-5 years 2-3 years or more Value Creation and Monitoring Board service Performance evaluation and review * Recruit management Assist with external relationships Help arrange additional financing Harvesting Investment . IPO Acquisition LBO Liquidation Distributing Proceeds - Cash Public shares . Other 10 years plus extensions