6 Traps To Avoid When Raising Capital

By Venture Capital

Brad Sugars of Action International has published an article titled “6 Biggest Mistakes in Raising Startup Capital.” In the article, Brad lists the following as the 6 biggest mistakes you can make when raising capital for your startup:

1. Half-baked business plans
2. Focusing too much on the idea and too little on the management
3. Not asking for enough money
4. Having too many lenders or investors
5. Failing to get the proper legal agreements
6. Poor cash flow management

So far on The Startup Lawyer, I’ve talked to you about the benefits of keeping the number of your investors low (#4 above). And for the most part, this blog is dedicated to ensuring you conduct your startup company in the proper legal way (#5 above).


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