Interested Investor ≠ Deal Closed. Be Legally Ready.

An excited founder once shared that an investor has shown some serious interest into buying stakes in his company. Then came due diligence raising questions like:

a. “Are your vendor contracts documented?”

b. “Is your IP protected?”

c. “Where are your employee agreements?”

The silence said enough. The investor walked away.

Reality: Investors invest in structured businesses and not messy backends. Legal gaps raise red flags faster than bad pitch decks.

Takeaway: Get your legal house in order before you seek funding. It’s not just about valuation, but about validation as well.