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As founding teams prepare to get a financing started, it is important to understand that investors are making a decision based on what they think the company is worth in terms of future value. Our recent QuickLaunch University webinar on seed fundraising addressed the issue of preparation and what information a team should have at the ready before meeting with seed investors.

It is not always easy to break into the VC/ investor network. Founders often how they can develop the right network of contacts to help them raise a seed round, which is crucial at this stage. During our recent QuickLaunch University webinar, Jere Doyle of Sigma Prime Ventures made it clear that as an investor, it’s all about who you know.

During our recent webinar on seed fundraising, questions were raised on the ideal size of a company’s founding team and if there was a magic number that may be more attractive to investors. 

Hollywood’s exclusive parties include only the hottest A-listers. Exclusive sales are advertised only to a boutique’s biggest spenders. The world has its own take on exclusivity: Investors and buyers routinely insert an “exclusivity provision” into of companies they’re looking to fund or buy.

While most founders want to make a boatload of money, achieving a stunning exit is hardly the only driver for most entrepreneurs. More often, they’re fueled by the challenge of solving a problem or producing something meaningful, whether it’s an app or an ice cream.

As a founder, you need to be scrappy, take care of that bottom-line. We get that, we’re all for a DIY approach when it makes sense (psst we even help you do that through our very free document generator). But, there is a fine line. There comes a time where you need to rope in the legal pros—a lawyer’s experience and knowledge that comes from hours and hours of advising , doing deals and even cleaning up DIY-that-went-wrong is your best bet for the long-term.

While there are several types of instruments and investment documents in the fundraising stage, and more coming to light regularly, it can become a challenge to determine which one is right for you and your . In the third and final part of this three-part blog series, we look at a new seed-stage investing tool, Simple Agreement for Future Equity (Safe).

It is typical that founders often start seeing more once they hit the fundraising stage. There is an increasing number of types of instruments and investment documents, making it challenging to determine which one is the best option. In the second part of this three-part blog series, we look at Series Seed.

Starting a company has never been easier. Technology solutions for payroll, , cloud computing and payment systems have made it much cheaper to take care of the back end. But founders may start seeing more when they hit the fundraising process, some of which come from legal fees. Fortunately for entrepreneurs, several lawyers and investors have tried to cut down these by providing standard documents for seed-stage investing. Unfortunately for entrepreneurs, as more and more new types of instruments and investment documents are introduced, it becomes difficult to distinguish between them or even understand which one is the best . In the first part of this three-part blog series, we look at .

This is the third and final portion of our three-part blog post series exploring Regulation and its provisions. The final rules are expected to become effective on May 16, 2016. The Securities and Commission (“SEC”), as directed by Congress under the of 2012, recently adopted final rules to permit equity “,” characterized by the SEC as “a relatively new and evolving method of using the Internet to raise capital to support a wide range of ideas and ventures.” “Regulation ,” as the final rules have become known, were published in the Federal Register on November 16, 2015.

This is the second of our blog posts exploring Regulation and its provisions before the final rules become effective on May 16, 2016. As directed by Congress under the of 2012, the Securities and Commission (“SEC”) recently adopted final rules to permit equity “,” characterized by the SEC as “a relatively new and evolving method of using the Internet to raise capital to support a wide range of ideas and ventures.” The final rules, referred to as “Regulation ,” were published in the Federal Register on November 16, 2015.

As directed by Congress under the of 2012, the Securities and Commission (“SEC”) recently adopted final rules to permit equity “,” characterized by the SEC as “a relatively new and evolving method of using the Internet to raise capital to support a wide range of ideas and ventures.” The final rules, referred to as “Regulation ,” were published in the Federal Register on November 16, 2015. Over the next several weeks, we'll explore Regulation and its provisions before the final rules become effective on May 16, 2016.

Founders soliciting venture funds quickly get comfortable revealing details about their operations, vision and finances. They may also need to be willing to step on a scale and get a blood draw. Investors try to ensure that the they’re funding are healthy, and, strange as it might seem, they like to know that critical founders are in good shape, too.

Entrepreneurs and investors often discuss a “valuation cap” when they’re negotiating convertible notes or convertible securities. But the parties may have different understandings of how that cap works.

Strategic investors can be an important part of the funding and growth strategy for many companies. Strategic investors are typically companies in the same industry or an industry related to your venture that strategic value beyond the dollars they invest. So while they are making a financial investment, they are also hoping to get something else—hopefully something that is beneficial to both companies—out of the relationship.

So you've been pounding the pavement trying to raise money for your venture—talking with friends and family and using your contacts to get introductions to , accelerators and VCs. You know that if you can just get that initial capital you can build a winning company, but so far no one is willing to take a risk on you. Instead, you keep hearing thing like, “I'd be interested once you get more traction,” or “It's a great idea, but I think you need to prove the business model out a bit first.”

This is the second in a series of posts on common costly legal mistakes made by founders of early-stage companies.



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