Foley recently cohosted a webinar with 4thly where a panel of experts discussed early-stage start-up financings in the new economy.
The panel was moderated by Bret Waters and the speakers included Louis Lehot, Natasha Allen, Igor Taber, Taylor Oliver, and Ben Haywood.
The panel discussed various topics including what people should know about the pace change in early-stage financings, the change in the financial structure, and things they are most excited about in 2023.
Here are some of the key takeaways from their discussion:
- Investors are not moving as quickly as they did in the past. Thorough due diligence on financing options will help expedite the process.
- We continue to see great companies get formed, and this is the best time to be in the start-up space and build a new business. Currently, investors have more time to spend with founders to negotiate the value of start-ups.
- Make sure to find the right fit. The balance of power felt very off in 2021, where there was a lot of drive on the entrepreneur side. The balance of power is starting to normalize.
- It is a great time to raise a seed preferred equity round and take the time to set it up properly to prevent any type of hostile discussion with founders a year down the road if they are unable to raise it to the next round.
If you have any questions on the topics discussed, please reach out to Louis Lehot or Natasha Allen. To learn more and view a recording of the webinar, click here.
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