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Terry Anderton from LVED talks about Negotiating Mistakes Startups Make

Startup Fundraising Mistakes to Avoid

Terry discussed common mistakes startups make when raising funds, particularly targeting the wrong investor types and check sizes, which can lead to a complex cap table with many investors. Terry advised that startups should aim for the largest check size from the fewest number of investors. The discussion also touched on crowdfunding as an alternative strategy, noting that platforms like StartEngine often set up separate entities to manage small contributions under specific regulatory constraints.

Startup Capital Structure Strategy

Terry advised Mary that startups should avoid having multiple small investors on their cap table, recommending the use of a special purpose vehicle to co ...