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How much is the founder investment?
Include dollars and other assets.
How much is being raised?
Provide details on the current round.
How much is already committed by investors?
This should include only formal commitments.
Are any prior investors participating in the round?
If this is a second or later round, list prior investors that have committed to invest in this new round.
Is there a well-known investor leading the round?
Make note of any names that would encourage other investors to commit.
Is there a minimum amount of capital being raised before a closing occurs?
Pick a closing date, then don’t enforce it. When raising large sums of money from venture capital firms and institutional investors, closing dates are critical. The interest income on $50 million is about $50,000 per week (which is approximately the same amount as the total legal fees on VC rounds), so the cost of a closing delay is substantial. This explains why your lawyer will give you financing documentation for your startup round of funding that has a closing date clause.
You should ask your lawyer to modify the standard closing date clause to read “The closing date is [some date in the near future] or another date that is mutually agreeable to both parties.” This small change will keep the documentation valid for several weeks after the closing date in case your investor takes extra time to give you the funds.
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