What Startups Should Consider Before Raising Capital

Raising venture capital is a transformative moment for any startup. However, founders must carefully prepare their legal and corporate structure before approaching investors.

Corporate Structure

Before raising capital, ensure your corporate structure is clean. This includes proper incorporation, clear equity ownership, vesting schedules and intellectual property assignment.

Term Sheet Fundamentals

Understanding the key terms in a venture capital term sheet is crucial. Pay close attention to valuation, liquidation preferences, anti-dilution provisions, board composition and protective provisions.

Due Diligence Readiness

Investors will conduct thorough due diligence. Prepare by organising your corporate records, contracts, financial statements and compliance documentation.

This is general information only. This is not legal advice.