Category: Due Diligence

If I Lie To My Lawyer, Will It Save Me Money?

Not a chance. Even so, I occasionally find a client or prospect holding back important information, presumably because they think it will complicate the project and cost them more money. But that’s exactly why it should cost more money – because it makes things more complicated. Let’s see it in action… First Call Prospective Client: […]

Clean House Before Your Financing

Admission: I don’t have a housekeeper, but if I did, I would have to clean my home before the housekeeper comes by, because I don’t want to reveal what a slob I am. Startups thinking about venture capital financing or mergers should adopt the same approach. Before closing the deal, there will be a due diligence […]

Five Keys To Working With Investors

If you are a startup founder and you are looking for outside investment, here are five keys to working with angel investors and venture capital funds. Investigate Your Investors Potential investors are going to put a lot of money into your company, and they will investigate your company thoroughly. You should do the same with […]

Anatomy of a Term Sheet – Conditions to Closing

Welcome back to our Anatomy of a Term Sheet series. We are taking the model Series A term sheet from the NVCA, and analyzing the various terms in depth.  We’ve gone through the charter terms that involve changes to the startup’s certificate of incorporation, and now we are working on the Stock Purchase Agreement section […]