Category: Fund.

Are you raising money for your startup or small business? If so, you probably know by now that there are a lot of decisions, documents, and dangers when raising money. Also, if you do not have a lot of experience seeking money from investors, then you likely have some questions as you move forward.

Let’s say you have started a new company and now you need to raise money from investors in order to bring some outside capital or investment into your company. Do you set up an equity financing and sell shares to equity investors? Or do you take in new investment as debt that must be repaid? When getting ready to raise money, many entrepreneurs and small business owners are not sure how to structure the proposed financing that they need.

Entrepreneur’s Question: “Could you please clarify for us what type of information our company is legally obligated to provide to (minority) shareholders, and how often (e.g., financial statements, cap table, etc.)?”