Keep. It. Simple. (Stupid).
Entrepreneurs, you are creative and innovative, but when raising
financing it is ok to follow the norm. There is no need to try and
reinvent the wheel. Standard also works. I would even argue that
from an investment perspective it is superior.
When there are too many moving parts, you run the risk of
getting side tracked.
I understand that securing financing is not always enough, you
want to procure added value from your investors, for example
manufacturing, distribution and marketing networks.
It is easy to get tempted by alternative structures, or to try
and roll too many transactions in to one. You invest in us, we will
simultaneously incorporate a joint venture to do A, B and C
together and we will grant you a separate license to our technology
for X,Y and Z.
