How simple housekeeping can help to close a capital raise
During the process of a capital raise, it is likely you will need to present some documentation for due diligence purposes. The bigger the raise, the more likely you will encounter a more intense due diligence process. This may include a full audit of your company’s legal documents.
I can’t recommend enough that if you haven’t already got a good cloud-based filing system in place, you get one as soon as possible. Developing good habits now could save you from expensive, time-consuming admin work later.
I often come across entrepreneurs who think that written agreements are unnecessary in the early stages of their business. This can be agreements relating to things such as employees, contractors and commercial partners. What is often overlooked is how this kind of thinking may present potential risk issues for future investors.
If you are just launching your startup, I suggest you consider setting up a simple framework from day one. I recommend Google Drive or Dropbox. If you already have something in place but it’s not organised, it’s not too difficult to make some changes. The key is keeping the high-level structure simple and then developing good disciplined habits to maintain it. Read more
Clare Hallam - SmartCompany - 28 November 2018