Conduct Research on Potential Investors

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Conduct Research on Potential Investors

Raising capital for a new startup can be a daunting task for the founders. There are several types of investors and capital sources for startup projects, including friends and family members, angel investors (high net worth individuals), venture capital funds, corporate/strategic investors, and government grants.

Each of these capital sources has different investment criteria and expectations. It’s important for founders to understand those factors and take them into account in developing a fundraising and investor outreach strategy that is appropriate for the company’s stage of development, industry, and funding needs.

In addition, founders should recognize that being introduced to an investor prospect by someone they know and trust is always a better approach than contacting them cold. Doing your homework and being thoughtful about what types of investors you approach (and don’t approach), and about how you approach them, will save valuable time and increase your chances of getting funded.

You’ve Got VC Money: The Punchlist

As outside counsel to thousands of VC-backed startups, we are often asked the same questions about what startups need to do after raising their first round of VC financing. Here is a quick and dirty list of those next steps. The action items below are described in…

You’ve Got VC Money: Board Meetings

Board meetings are your opportunity to check in with and give an update to your bosses and get feedback and guidance from the experienced members of your board. It is common for VC-backed startups to have four to six board meetings per year, though this frequency can…

You’ve Got VC Money: Board vs Stockholder Approval

While your financing agreements might have other requirements, below is a nonexhaustive list of the types of corporate decisions that typically require board and/or stockholder approval: Board Approval Is Required to: Stockholder Approval Is Required to: Amend the charter or bylaws. Approve significant corporate transactions (e.g., sale…