Identify the correct sequence of events that happen while seeking funds from a venture capital in the start up finance stage.

(a) A management team is formed to run the venture.

(b) A prototype is being developed and fully tested.

(c) If the company has a board of directors, a person from the VC will take seats at the BOD.

(d) The management team establishes a feasible production line to produce the product.

(e) A Business Plan is presented by the entrepreneur to the ventures capital firm.

Choose the most appropriate answer from the options given below:

(e), (a), (c), (b), (d)

If the idea/product/process is qualified for further investigation and/or investment, the process will go to the second stage; this is also called the start-up stage.

A business plan is presented by the entrepreneur to the VC firm.

A management team is being formed to run the venture.

If the company has a board of directors, a person from the VC firms will take seats at the board of directors.

While the organisation is being set up, the idea/product gets its form. The prototype is being developed and fully tested. In some cases, clients are being attracted for initial sales.

The management-team establishes a feasible production line to produce the product. The VC firm monitors the feasibility of the product and the capability of the management-team from the board of directors.