If you’re thinking about raising money, you may have some friends that want to co-invest.\u00a0 Or, you may have a few folks that you want to recruit as investors.<\/p>\n
A carefully chosen set of individual investors can be really helpful at various company stages.\u00a0 They can be mini-advisors, providing help at key junctures:\u00a0 funding, acquisition, strategy, etc.\u00a0 Also, a commitment from “rock star” individuals can give you some additional credibility in raising the main funding round.<\/p>\n
If you’re thinking about individuals, it’s important to build it into VC discussion from the beginning.\u00a0 When you’re talking about the size of the round, you should say you intend carve out x% or $y of the Series A for individuals.\u00a0 (Adding individuals at the end of the process is a pain.\u00a0 I just went through this for a company I recently co-founded<\/a>:\u00a0 the resulting cap-table jostling is energy that should be spent elsewhere. )<\/p>\n Other things to keep in mind:<\/p>\n Finally, get all of the details to the attorneys well before closing, including entity names (many individuals invest through an LLC or a estate planning trust).\u00a0 Nothing kills the excitement of closing a round of funding like a holdup from a $25k investor.<\/p>\n","protected":false},"excerpt":{"rendered":" If you’re thinking about raising money, you may have some friends that want to co-invest.\u00a0 Or, you may have a few folks that you want to recruit as investors. A carefully chosen set of individual investors can be really helpful … Continue reading \n