ArticleThe entrepreneur-investor relationship can make or break a startup’s success, and how this partnership is managed early on can determine the future trajectory of your business. Josh Kalish shared his insight with Forbes on key points entrepreneurs should keep in mind when building investor partnerships.
From the article:
“Get it out in the open now,” says lawyer Josh Kalish, a partner specializing in Emerging Companies and Venture Capital at Farrell Fritz, P.C., in an interview. “Make sure that you’re not setting yourself up for a meaningful disagreement in the period which you are planning to spend their money,” Kalish explains. Being clear on all provisions of the deal from the outset ensures you are aware of how they will impact both the immediate investment and the long-term standing of your business.
This stage is best executed with the help of legal counsel. These experts bring a sharp eye to clauses that might seem standard but could create complications down the road, such as veto rights or anti-dilution clauses. These terms, while often included to protect investors, can limit your flexibility in running your company if not structured properly. An experienced lawyer will help you understand the fine print and ensure that the document is drafted to protect your interests while allowing the business to thrive.
Read the article on Forbes here:
5 Ways Entrepreneurs Can Build Strong Investor Relationships
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