ChecklistsRaising Capital

Deciding to raise private capital for your business initiates a process that, if successful, will conclude when the company makes several specific representations about its existing capital structure.  To get ready for capital raise, consider these important questions about your existing ownership:


  • Is there a stock or membership interest ledger?
  • Have certificates of ownership (like stock certificates) been issued?
  • Who currently owns an equity interest in the company?
  • How did they get their ownership?
  • How much do they own?
  • How many classes of ownership exists?
  • What rights do the existing owners have regarding new issuances of ownership (such as pre-emptive rights or rights of first refusal)?
  • What rights to vote on new capital issuances do the existing owners have?
  • Has any entity or any person been “promised” ownership either in writing or verbally?
  • Is there an option plan?
  • Are any options, warrants or other “rights to purchase” equity outstanding or promised?
  • What is the current “fully diluted” ownership?
  • What are the total number of authorized shares of capital stock (if a corporation)?


This is a start. Make certain you have cleaned up any issues before approaching investors.


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