10 thoughts on “Blow-by-Blow: The First Fundraising”

  1. Very useful insight. Congratulations on getting funded. Reads like there were a few tricky moments but generally straightforward once the ball really got rolling. Were you Howzat’s first funding?}

  2. Congratulations. I only skimmed the article but here are a couple thoughts:

    1. I like to do as much due diligence as possible before signing a term sheet. Term sheets usually have a “no shop agreement” that prevents you from shopping the investment to other firms after you sign the term sheet. If there is still due diligence to do, your investors have too much leverage during the diligence process.

    2. It seems like you had no competition for the investment. It shouldn’t take two months to go from term sheet to cash in the bank (although anything is possible with a corporate investor). It should take under 4 weeks. It have seen it done in 2 weeks — although that is really out of the ordinary. Competition and alternatives keep the pressure on your investors and move things along.}

  3. Babak, what do you say to the “no shop agreement” if your investors suggest it? What is a typical strategy to use?}

  4. babak, i heard from many sources that such investments (VCs usually) can take up to 6 months.}

  5. Louis, Babak, thanks for the congrats. We were Howzat’s third investment and yes, things were more or less straightforward. Tricky moments did exist and that’s where having some good people to help was critical.

    Babak, getting the timing with all the moving parts of the agreement was one of the hardest things. 4 weeks sounds feasible, but probably dependent on the resources you can dedicate to the deal as well. The product relaunch was quite intensive in that respect.
    Great points on 1&2 – thanks.

    Adam, I’ve had similar quotes in terms of timing from a number of sources as well.}

  6. i’d like to hear more stories like theses, i’d like to hear also the negative stories since we are about to raise money the next few months.}

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