Startup Funding Espresso -- How to Paper the Fundraise

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

After diligence, investors who want to move forward will sign the investment documents.

For a convertible note raise, the investor and CEO will sign the note. It’s a rolling close, so the funds go into the business the next day.

For an equity raise, there are several documents in addition to the terms sheet. Some Series A raises can contain up to 9 separate documents including a subscription agreement, an option pool agreement, investor accreditation status, and more.

It’s best to have an attorney help with these documents.

If the investors requested a minimum amount of funding before closing, then the investor funds will go into an escrow account until the minimum threshold is reached.

Some companies have the investors sign the documents before due diligence, in which case the funding is contingent on passing that due diligence.  

This screens out those who just want to see what you have without having to commit any funds. 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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