Closing the Deal and Getting the Funding

Abstract

The interest of one investor invariably gives one the aura of invincibility. But don’t don your celebration avatar just yet! “Interest” is not the same as a signed deal, which is still not the same as cash in the bank. Other investors may come in at significantly better valuations; or they may not and one investor may be all you ever get. Refrain from assuming things unless specifically stated by investors - in writing. If ambigious, ask; in writing. Whether it’s consortium building, a term sheet, time frame, deliverables or exit strategies. Trust is great to have. But a legal backup is even more important. Be paranoid if you must!

If in a technical startup, never let the researchers take the lead on commercial and manufacturing elements. There’s a reason YOU are here!