Along with new investment
capital will come new board members who have the potential to serve
as either company assets or liabilities. Unfortunately, we have
seen some investors inhibiting, rather than enhancing, the growth
of portfolio companies. This is a key reason why you need to have
insight into the investors you approach. On the other hand, seasoned,
high quality board members can be invaluable to your company. They
can help you avoid common pitfalls, introduce you to business partners
and offer valuable insights on your strategic and operating plans.
In addition, these investors have the potential to increase the
odds of a successful outcome during future fundraising efforts,
a company sale or an IPO.
Our goal is always to stimulate excitement from
multiple high quality investors. This serves to enhance your choices
and to secure more favorable investment terms. Besides valuation,
there are many other critical terms, such as liquidation preferences,
that can dramatically impact the value of your remaining ownership
in the company. We are not only very experienced at negotiating
these terms, but we can be tough on your behalf without jeopardizing
your relationship with a future board member.