Navigating the Closing Process
How to Close Your Funding Round
Source: Closing Your Funding Round
Why This Matters
Many rounds fall apart at the last mile, so founders who prepare the process well drastically improve their odds of success.
Key Takeaways
- Create a closing checklist → Track all action items and stakeholders to avoid bottlenecks.
- Offer flexible options → Adapt terms for different investor types (e.g., family & friends vs. VC firms).
- Leverage third-party networks → Angel groups and trusted platforms can expand your investor reach.
- Hire the right lawyers → Specialized, startup-friendly firms keep deals fast and cost-effective.
- Plan follow-up meetings → Each session should end with clear next steps and timelines.
- Have a backup plan → Small bridge rounds or cost cuts can buy you survival time if the big raise stalls.
- Set clear deadlines → Drive urgency by aligning investors and lawyers around target dates.
- Stay involved at closing → Coordinate signatures, fund transfers, and final confirmations proactively.
Actionable Steps
- Build a closing checklist in your project tracker and review daily.
- Tailor deal structures to investor type (convertibles, equity, debt options).
- Vet any paid introducers/networks before committing fees.
- Choose a lean, startup-savvy law firm to avoid delays and high costs.
- Always set deadlines and reminders for follow-ups, and keep momentum.
- Develop a Plan B (bridge funding or runway extension) before starting the raise.
Tips & Tricks to Closing
Source: Surviving the Last Lap: A Founder’s Guide to Closing their Funding Round
Why This Matters
Many founders lose leverage in the final stretch of the deal, facing dragged timelines, hidden investor terms, or pressure to concede. Understanding “deal dynamics” lets you stay in control, close faster, and secure fair terms.
Key Takeaways
- Investors are human → They have egos, internal politics, and reputational pressure — which you can use to your advantage.
- FOMO vs. FOLS → Fear of Missing Out drives investors, but Fear of Looking Stupid (being dropped late in the process) is even more powerful.
- Information asymmetry → Investors often push for excessive disclosures without showing commitment; founders must balance what to reveal, when.
- Controlled disclosures → Share information strategically, and recognize that exclusivity has value — don’t give it away cheaply.
- Timelines are power → Stick to your deadlines; if you let investors “play the clock,” you’ll be forced into bad terms under pressure.
- You’re in the driver’s seat → It’s your company, your shares, and your timeline. Founders set the rules — not investors.
Actionable Steps
- Build FOMO/FOLS → Keep multiple investors engaged until the end; let them feel they might miss out or get dropped.
- Disclose smartly → Release information in stages; use exclusivity as leverage.
- Hold your ground on timing → Set deadlines and enforce them; don’t let investors stretch negotiations.
- Run the process on your terms → Use standardized, fair templates; decide who invests and when.
- Remember psychology → Investors fear reputational loss as much as missing a deal — founders can lean on this in negotiations.
