Do private investors spend more time evaluating a deal before investing, or in adding value after the investment has been made?
The answer is both. Remember that the essence of venture investing is value added. So each investment is time consuming. These investors bring their own contact network. They provide technical and marketing guidance and expertise to less-experienced entrepreneurs. They provide recruitment support and assistance in developing strategy and business plans. They also provide introductions to customers and vendors. They assist in joint venturing, identifying joint-venture partners, and so forth. Venture capital investing and value-added investing involve a commitment over and above the capital that is committed to the deal.
