TL;DR: When an investor or acquirer’s legal team runs due diligence, they aren’t just scanning for red flags, they are pricing risk into every clause that creates uncertainty, liability, or operational restriction. Five specific clause types account for a disproportionate share of the valuation haircuts, deal delays, and collapsed term sheets founders encounter: broken assignability, […]
Tag Archives: startup
24
Feb
Feb
You’ve nailed the pitch. The investor is nodding. Then come the five words every founder both wants and dreads to hear: “Send over your legal docs.” This is where many promising startups stumble, not because of a weak business idea, but because of poorly drafted, incomplete, or missing agreements. Investors and their legal teams are […]