Preparing For A Pre-Seed Financing Round

Benjamin Franklin famously cautioned that "an ounce of prevention is worth a pound of cure." Although Franklin was warning the people of Philadelphia that preventing a fire is better than fighting one, the same admonition holds true when seeking financing at any stage of your company's lifecycle.

Unfortunately, many pre-seed start-ups do not engage competent legal counsel early in the process and either use an online legal technology company that offers cookie-cutter forms not tailored to the company's business, find free forms on the Internet, or copy legal documents from companies in the same general line of business. In each of these cases, you often get what you pay for and mistakes made early on compound when you attempt to raise money from people other than friends and family willing to fund your dream.