Navigating Challenges in Distressed Companies with Becki DeGraw | Wilson Sonsini Startup Legal Basics
This Week in Startups
Document the Rejections to Strengthen Your Case
Thorough documentation of investor conversations is crucial during fundraising efforts. When approaching potential investors, it’s important to keep a record of all interactions, especially when rejection is encountered. Tracking each step—from initial contact to follow-up meetings and final decisions—provides a clear narrative of the fundraising journey. This transparency can demonstrate to stakeholders that an attempted fundraising was a true last resort, reinforcing the challenges faced. Such documentation helps to counter perceptions of self-dealing and justifies the terms of any resulting financial agreements, even if they seem punitive. Ultimately, maintaining detailed records not only legitimizes the fundraising process but also assists in future discussions and decisions.
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