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ARTICLE · 11 MAY 2022

Fundraising Considerations For Startup Founders

Raising money is essential for the growth and success of startups, however, this process can be challenging especially for startup founders...

NigeriaCorporate/Commercial Law

INTRODUCTION

Raising money is essential for the growth and success of startups, however, this process can be challenging especially for startup founders who are unfamiliar with the process. One way startups raise money is through venture financing, so startup founders must understand the basic concepts involved in venture financing. Financing is usually done in rounds with each round involving various elements, the rounds are named in somewhat abstract ways, such as 'Series A', and 'Pre-Seed' these terms and other factors involved in the fundraising process make it appear daunting.

It would be ideal if venture financing was simple and summarized in a single document. Unfortunately, this is not the case, so the purpose of this article is to provide a brief overview of the legal aspects involved in raising venture capital that founders should be aware of.

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