Series A financing close
A Denver software company had a lead investor and a term sheet, but its early records were not ready for diligence.
Overview
Early equity had been promised in emails, two advisors held unsigned option grants, and the company had converted from an LLC without updating several contracts. Investor counsel would find all of it within the first week.
Before diligence opened, we rebuilt the capitalization table from source documents and documented every grant and conversion properly.
Outcome
Board and stockholder approvals ratified the earlier grants, missing IP assignments were signed, and customer contracts were updated to the corporate entity.
The company negotiated the definitive documents from a clean record and closed within the timeline set in the term sheet.
Illustrative example, past results do not predict future outcomes.
Takeaways
Clean records shortened diligence and kept the negotiation on business terms instead of cleanup items. The company now runs a quarterly equity and governance review so the next round starts ready.
Planning a similar move?
Every matter is different. A first conversation shows which parts of this example apply to your situation.
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