Yaniv explains why startup fundraising isn't over until the money is in your bank.
💼 Extended Fundraising Process: Emphasize that the fundraising process extends beyond obtaining a signed term sheet and often involves a significant lag before the money is securely in the bank.
📅 Early Planning for Lag Periods: Encourage founders, especially first-timers, to plan for potential delays in the funding process, stressing the importance of starting the raise early to avoid unexpected gaps in cash flow.
📜 Non-Binding Nature of Term Sheets: Highlight the non-binding nature of term sheets, acknowledging that ethical investors typically honor signed agreements, but cautioning that unforeseen circumstances or unethical behavior may lead to changes.
🚫 Avoiding Assumptions: Warn against making assumptions about secured funds before they are in the bank, advising founders not to count on the money or incorporate it into their financial plans until the transaction is finalized.
👀 Founder Responsibility: Remind founders that in the fundraising process, they need to look out for themselves and be cautious, stressing the importance of being aware that money is not accessible until it is safely in the bank.
#entrepreneur #startup #investing #team #global #technology #product #growth #bank #fundraising
