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Legal Mistakes Startups Make While Raising Funds
By siliconindia
Not Deligencing The Investors
One of the common mistake that startup entrepreneurs make while raising fund is not deligencing the investor, i.e., failing to investigate about the person on the other side of the table. Raising a fund from an outsider means marrying the person for the lifetime, or until the years you pay off their debt. It is important to investigate if the investor has made any investments like this before, how many and what all roles does he play, and are they trust worthy. Most important fact to know about the investor is the motivational factor behind investing in your organization.
