Recent Amendments to Definition of “Accredited Investor” Now Effective; Individuals May Now Also Be Accredited Through Credentials12.10.2020
C. S. Avery Reaves
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.
Hollywood’s exclusive parties include only the hottest A-listers. Exclusive sales are advertised only to a boutique’s biggest spenders. The startup world has its own take on exclusivity: Investors and buyers routinely insert an “exclusivity provision” into term sheets of companies they’re looking to fund or buy.
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 startups, doing deals and even cleaning up DIY-that-went-wrong is your best bet for the long-term.