Startup Newsletter August 2018
Leveraging the Tax Code to Attract Startup Investors
Aside from a rare few fortunate founders, most startup CEO’s will find themselves on the fundraising circuit at some point in the early years of the company. For some founders, it may be many laps around the circuit.
While there are plenty of tips to better a company’s chances of fundraising success, most of the “competition” out there pitching are utilizing those tips. Just in case your company is not, here’s a few of the “standard” tips: polish your pitch deck until it’s perfect, and then polish it again; practice your pitch until you know it like the back of your hand, then practice some more; build a full set of projections, and be able to support your key assumptions; know your audience, the more research on them the better; know your “ask,” and be ready to defend your valuation.
I know what you are thinking, “what else is there?” While these tips appeal to an investor’s normal expectations, what if you could sweeten the deal more? That is what we are going to help you do via investor favorable tax planning. Tax planning…really? Yes! Many individual investors and large investment groups are savvy investors. They not only want a strong top line return on their money, they want to maximize after-tax return. Why not sell to that desire?