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Published in:
2016 | OriginalPaper | Chapter
8. Closing the Deal and Getting the Funding
Author : Anil Sethi
Published in: From Science to Startup
Publisher: Springer International Publishing
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Abstract
The interest of one investor invariably gives one the aura of invincibility. But don’t don your celebration avatar just yet! “Interest” is not the same as a signed deal, which is still not the same as cash in the bank. Other investors may come in at significantly better valuations; or they may not and one investor may be all you ever get. Refrain from assuming things unless specifically stated by investors - in writing. If ambigious, ask; in writing. Whether it’s consortium building, a term sheet, time frame, deliverables or exit strategies. Trust is great to have. But a legal backup is even more important. Be paranoid if you must!
If in a technical startup, never let the researchers take the lead on commercial and manufacturing elements. There’s a reason YOU are here!