Getting private equity investment from an investor that is either an institution or a sophisticated investor is gold dust for start-ups. Investment from an investor with knowledge or expertise in your business idea is a great validation of your business. Although it does not mean that your idea will be a success it does help to boost confidence in your idea. Outside investment from a sophisticated investor demonstrates that you are not alone in believing in your value proposition. However, preparing your business for a private equity investment is not straight forward if you have not been through the process before.