Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Judy Robinettamazon.com
Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
First of all, you must create a plan to integrate your investors into your company’s operations. “The first steps you take with your new investment partners will set the tone for your future relationship and how you work together through the challenges that inevitably lie ahead,” writes Bob Ackerman, founder and managing director of early-stage ven
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Be aware of warning signs: for example, they’re not returning your phone calls or emails, or you and your team are being treated poorly. I know it’s tempting to ignore warning signs when you’re in a deal and you think, “I just need to get to the money and then I can fix this.” Trust me, a bad investor relationship can be more stressful than a bad m
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Disclosures of past litigation or other legal issues: any past instances of regulatory issues, lawsuits, human resource problems, or anything that could affect the value of the company or the ability of you or your employees to work there needs to be disclosed.
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Compliance documentation: if your industry is tightly regulated (pharma, biotech, and medical device manufacture spring to mind), you might need to show compliance with federal, state, and local ordinances and all the necessary permits to operate the business.
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Comparables: research similar companies and compare based upon the above factors.
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Operations: review the processes and internal structure of the company.
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Technology assessment and protection of your technology in the form of IP: this may require expert or professional assistance to determine the validity of the technology. However, equally important is investigating the company’s IP to confirm both ownership and legal protection.
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Management team: interview all team members and check key employee references to see if the team is up to the task. This will include internet searches, background checks, and checking references.
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Competitive arena: independent competitive analysis.