What Does a Typical VC Decision Process Look Like?

The typical VC decision process involves 4–6 stages: initial screening, partner meeting, deep diligence, partner discussion, investment committee (IC) vote, and term sheet.

The entire process takes 4–12 weeks depending on the firm and deal. Most startups get filtered out at screening or after the first meeting. Only deals that pass through multiple internal checkpoints reach the IC for a final decision. Understanding this process helps you navigate timelines and read signals accurately.

Why Understanding the Process Matters

VC decision-making is opaque to most founders. Without understanding internal dynamics, you can't:

• Interpret where you stand in the process

• Anticipate timeline and next steps

• Identify real interest versus polite stalling

• Prepare effectively for each stage

Knowing the typical process helps you manage expectations and push deals forward strategically.

For deeper context on how VCs think about investments, read our guide on understanding VC investment thesis.

The Six Stages of VC Decision-Making

Stage 1: Initial Screening (1–3 Days)

Your deck or intro lands with an associate, principal, or partner. They spend 2–5 minutes scanning for:

• Stage and sector fit

• Team background

• Basic traction signals

• Any obvious red flags

Outcome: 80–90% of inbound is rejected here. Survivors get a first meeting.

Stage 2: First Meeting (30–60 Minutes)

A partner or senior team member meets you—often over video or coffee. They're evaluating:

• Founder quality and communication

• Problem and solution clarity

• Market opportunity size

• Early traction evidence

Outcome: 50–60% are passed on after this meeting. Strong candidates advance to deeper evaluation.

Stage 3: Deep Diligence (1–4 Weeks)

This is where real work happens. The VC team conducts:

• Customer calls: Speaking with your users or buyers

• Market research: Sizing opportunity and analyzing competition

• Financial review: Examining metrics and unit economics

• Reference checks: Back-channel conversations about founders

Outcome: Many deals die during diligence when assumptions don't hold up.

Stage 4: Partner Meeting (1 Hour)

You present to multiple partners, sometimes the full partnership. This is your chance to pitch the entire decision-making group.

What they're assessing:

• Can you command a room?

• Do partners get excited about the opportunity?

• Are there internal champions for your deal?

Outcome: Partner meetings are often the final filter before IC.

Stage 5: Investment Committee (IC) Vote

The partnership formally votes on whether to invest. IC dynamics vary:

• Unanimous consent: All partners must agree (common at smaller funds)

• Majority vote: Most partners approve (common at larger funds)

• Champion model: One partner sponsors the deal and takes responsibility

Outcome: Deals that reach IC have 50–70% close rates. Rejection at IC is often final.

Stage 6: Term Sheet and Closing (1–4 Weeks)

If IC approves, you receive a term sheet outlining valuation, investment amount, board composition, and key terms. Negotiation follows, then legal documentation and closing.

Timeline Expectations

Fast deals (4–6 weeks): Strong conviction, competitive dynamics, or pre-existing relationship Average deals (6–10 weeks): Standard process with thorough diligence Slow deals (10–16+ weeks): Complex diligence, internal hesitation, or low priority

If you're past 8 weeks without clear progress, the deal may be stalling.

How to Move Through the Process Faster

Create urgency. Multiple interested investors accelerate decisions.

Reduce friction. Have data room, references, and financials ready.

Build internal champions. Partners who love your deal push it through.

Use SheetVenture to identify investors with faster decision processes and recent activity.

The Bottom Line

VC decisions follow a structured process: screening, meetings, diligence, partner discussions, IC vote, and term sheet. Understanding each stage helps you read signals, manage timelines, and push deals forward.

Most deals die early. The ones that survive require navigating each checkpoint.

Track investor decision patterns with SheetVenture's insights.

SheetVenture helps founders understand investor behavior, so you know exactly where you stand in the process.