Startup Funding Espresso -- Key to Facilitation Is Operational Involvement
Key to Facilitation Is Operational Involvement Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In managing an early exit term sheet, it\u2019s important to facilitate the ongoing information rights due to the investors. Most term sheets provide rights to the company\u2019s financial statements, including the income statement and balance sheet as well as the cap table. This duty is often left up to the founder to follow up. In the rush to close sales, hire employees, and make the company successful, the founder sometimes leaves the information rights duty undone. For an early exit term sheet, it\u2019s important to maintain this duty. It\u2019s best to set up a service that accesses this information regularly, say monthly to provide the investors the information. Most investors believe that legal control is the best way to enforce the terms and conditions of the term sheet. A better way, though is operational control.\xa0\xa0 By gaining access to the company\u2019s accounting system and bank account, the investors gain a better understanding of the company. The more the investors know the company\u2019s situation, the more they can help the company achieve its goals. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Please , share, and leave a review. Music courtesy of .