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raising capital
5 min read

Tales From the Term Sheet: Raising Capital

So, it’s time to raise some capital. The fundraising process is always intense and time-consuming. A fast and orderly approach will take you far, but maintaining a competitive drive will be critical to closing.

Chasing down VCs is only the start. There’s the constant revising of pitch decks, financial and legal due diligence, disclosures, and negotiations. We went through this ourselves just last year, securing our most significant round of capital yet, and we did it by taking a new approach. We moved faster than ever, completing the entire fundraising process in just 91 days, ultimately securing $40M. 

Raising capital is complex, which is why we’ve prepared a few quick and dirty suggestions to help you get organized and ready to crush your next raise. 

It’s Time to Organize

Once requests start coming from investors, you need to be ready to move. Prepare your VC prospect list, refine the pitch deck, and get your financial in order and go-to-market strategy locked and loaded. Additionally, consolidate anything Legal might need in one place. Whether it’s third-part paper contracts or employee agreements, you shouldn’t have to waste time digging out documents scattered across departments and devices once negotiations start. 

Housekeeping Is Essential

In any negotiation, both sides must have a single source of truth. Human error is unavoidable, and even the most organized legal team can forget to link contract amendments. When sending revised documents back and forth, having a single system to store contracts is a life-saver. You don’t want to reach the negotiation table only to be reviewing different document versions. This process already takes a lot of time, and file disparity can be a blow to a potential deal. 

At LinkSquares, we leverage our software to avoid situations like this. Our technology simplifies organization through tagged and categorized documents. We found every agreement and related amendments we needed in minutes during our last raise. Gone are the days of combing through hundreds of files by hand.

Pace Yourself

You only need one VC to genuinely buy in to have a successful round. You can expect to do upwards of a hundred pitches during seed rounds until the checks get larger and the valuations higher. It’s important to remember this is a marathon, not a sprint. Over the past six years, I have done many hundreds of pitches, and if I hadn’t kept this in mind, I would have burned out long ago. 

Instead, I’ve taken my time, and cultivated a narrative that’s compelling and always relevant. Every founder’s story is different, and VCs know it could be the first chapter in a whole new book of business. The VCs that led our first round looked at 1,400 companies that year and only wrote ten checks. Those are the odds, and it’s your job to figure out how you’re going to be one of the 10.

We’re Here to Help

LinkSquares Analyze enables you to consolidate all your contracts into a single repository. All you need to do is regularly review new agreements and sort them accordingly. You can tag them for easy categorization, such as vendor agreements versus contractor agreements or consulting contracts. Leveraging artificial intelligence (AI), our software reads and understands contracts, allowing legal teams to work more efficiently and collaborate better. Remember: successful fundraising requires an efficient strategy. With our contract lifecycle management technology, you don’t have to worry about version control or agreements getting lost in all the emails back-and-forth.  

If you’re about to embark on a journey to secure capital for your business, don’t hesitate to reach out and ask how LinkSquares can help.

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Vishal Sunak is the co-founder and CEO of LinkSquares.