How long does it take for investors to approve the idea and to grant the necessary investment?

David S. Rose
David S. Rose , Founder and CEO , GUST INC.
11 Sep 2014

The question is based on a misunderstanding of how venture capital investment works.

First of all, VC funds do not invest in ideas. What VCs invest in are operating  companies that are ready (or almost ready) to scale. There are many wonderful ideas, all of which are not fundable. Only companies get funded.

Next, VCs don’t have an unlimited amount of money that is given to companies as long as they deserve it. As such, its not like applying for a loan at a bank. Instead, they have a limited amount of money entrusted to them by limited partners, and they invest in a very, very few companies each year.

In fact the odds are 400:1 against a company getting funded, as that’s how many companies a VC looks at before deciding on which one to invest in.

Now, with that as background, it will typically take one to three months to negotiate and diligence a venture investment, if the company manages to get one at all.

Gust Launch can set your startup right so its investment ready.


This article is intended for informational purposes only, and doesn't constitute tax, accounting, or legal advice. Everyone's situation is different! For advice in light of your unique circumstances, consult a tax advisor, accountant, or lawyer.