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Don’t Sign Til It’s Time!

Posted by on August 23, 2011

One of the biggest decisions entrepreneurs face – and therefore one of the most critical, is opting to accept money from an angel, VC, private equity group, or incubator.

The temptation to take the first deal is enormous – you’ve struggled, maybe for years, and finally it looks like someone believes in you and you will be “in the money.”

Don’t sign.  Pause. Breathe.  Counter-offer.

While the investor has the best interests of the company at stake, this certainly isn’t synonymous with YOUR best interests.

I can’t tell you how many times I have seen an entrepreneur lose control of his own deal.

If you’ve been offered “benevolence” from an investor, or an incubator, let me take a look at the deal for you, offer you some thoughts.   There is no fee for this.  It’s kind of a “pay it forward” type of deal, or perhaps a payback for all the folks that have been mentors for me along the path.

 

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