1B - Capital Raising and Investor Engagement

Delving into capital raising, this episode presents a case study of a technology startup seeking to raise $5 million. The discussion focuses on the key elements that startups need to consider as part of the capital raising process, including preparing for investment, identifying the right investors, and the legal requirements that must be complied with to secure funding. Andrew and Robert explain different investor categories, such as sophisticated and wholesale investors, and the relevance of legal documentation such as term sheets, subscription agreements, and shareholders agreements. They emphasize the importance of protecting confidential information including as part of the due diligence process, and typical negotiation dynamics between startups and potential investors.