McnewHyman420
出典: くみこみックス
alvin donovan - It is important to understand First Round Financing stipulations that your investor will likely used in structuring their investment in your business.
You can find different nuances to take into account according to regardless if you are talking to a PIPE Fund, private equity firm, angel investors, or hedge fund investors. These investors often use different structures and even have different exit strategies.
alvin donovan - You have to think of financing being a chess game. You must think 2 or 3 steps ahead. A lot of companies don't raise investment capital financing in a round without the need to raise financing in 2 or three subsequent rounds. First round financing therefore becomes important for several reasons.
1. In the event you share a lot of equity (your company's common or preferred stock) within the first round, you've greatly diluted the ownership position of your Management Team. As an example, should you stop trying 45%, and you are likely have to subsequent financing, then a result will likely mean quitting voting charge of your company to raise more capital. Obviously, if you're able to convince subsequent round investors to provide you with Super Preferred voting rights then you can have the ability to maintain voting control, even though you loose majority ownership in the company.
2. Growth capital firms typically like to control the whole deal. This means should you quit to much within the first round financing, you'll be at their mercy in subsequent rounds. They'll use the undeniable fact that you might be desperate for more money for the company. They are going to also have the sale structured so that should you won't give up control in the subsequent financing round, they'll be capable of taking over the company and replace management. They are able to do that by structuring the financing terms using a number of different "default clauses". For instance, should you default on a payment or don't meet certain goals which have been established.
3. Additional problems without understanding every one of the implications of first round financing is it can restrict your ability to boost subsequent financing. For example, suppose your investor(s) that provided the initial funding possess a disagreement and also you opt to go elsewhere for additional funding. This second round investor is going to take a look at all documentation on the initial funding you received and may even wish to talk to the very first group that funded your organization. There may be restrictions on subsequent rounds that scare other investors away. What i'm saying is restrictions like, rights of first refusal, Security Agreements that run in favor of the original investors and clauses that prevent you from giving other investors more voting control or even a better stock purchase price compared to first investor group.
Private Equity firms have very skilled management teams, advisory boards and armies of lawyers available. They must be certain that they have treatments for subsequent financing rounds so that they aren't diluted themselves.
alvin donovan - You'll want competent an attorney to counsel you during the first round of financing. It is very important to know the impact subsequent financing rounds will have on management's stock ownership and voting control. That is why you need to carefully analyze and understand your first round of financing. Or even properly negotiated and understood, it can have devastating effects on your subsequent rounds of financing or your ability to even obtain subsequent financing.
