Bay Area Business Lawyers | Primum Law

Seeking Venture Capital


Businesses need capital in their early stages in order to have a shot at success. The founders can only contribute so much of their money in order to build the business. At some point, a company will need to seek early-stage investors. Attracting venture capital can be a competitive process. Strong companies often have their choice of offers from which to choose.

There are many considerations when raising venture capital. Businesses want and need seed capital but do not want to give up too much of the company to do it. Venture capitalists have some degree of power, but a company with a strong business can negotiate to strike the best possible deal.

Here are some things that are negotiated when raising venture capital:

  • What percent of the business the venture capitalists will earn
  • How much control the founders may need to give up and the level of oversight the venture capitalists will exercise
  • Protections for the venture capitalists in future rounds of financing

A good venture capitalist can be a strong partner for a business. They have knowledge they are willing to lend to help the business grow. Ask anyone about the early-stage Silicon Valley venture capitalists who were instrumental in the development of the Internet.

Businesses need to appear professional and viable to attract capital. How you build and develop your company’s infrastructure can help your company’s image and attractiveness in the eyes of venture capitalists. Hiring an experienced startup business attorney can benefit your company by building out your legal function and helping you in negotiations.

Contact a San Francisco Startup Business Attorney Today

The attorneys at the Primum Law Group work with small businesses in the early stages of their growth. To speak with an attorney, you can send us a message online or call us today at 415.293.8042.

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