Any business that needs money to grow.

There are lots of different ways to get money into a business, and each way has its own advantages and disadvantages.

The big of advantage of equity funding is that you don’t have to pay the money back: the big disadvantage is that you get diluted and, typically, you lose some control.

For loan-based funding (loans, revenue-based financing etc), it’s exactly the other way round. No dilution, but you have to pay the money back.

And then there are a number of hybrids available – convertible loans, SAFEs, and so on.

I have a distinctive approach to investment/funding deals.

1.     I will agree upfront with you what your success criteria are. This means that we are aligned right from the start.

2.     I’m a big believer in Eisenhower: “the plan is nothing, planning is everything”. Success starts with good planning: the creation of an internal termsheet so that it’s clear what the choices are, and the trade-offs are behind each choice. This is particularly important with deals which contain a high number of variables, each variable having a knock-on impact on the next.

3.     The fact that we have been through the planning process means that we can decide quicker and react quicker – a key contributor to a successful negotiation.

4.     I act more like an in-house counsel and I (typically) front the negotiation (negotiation is one of my key strengths). That means (unlike a law firm) I don’t come to you for a decision on every minor issue: I will filter out the small stuff and only come to you with important decisions. This has two main benefits: a) it keeps your brain clear so that you can see the wood from the trees, and b) it takes work off your plate and allow you to get with your day job.

1. To (mis)quote Eisenhower: “the plan is nothing, planning is everything”. Success starts with good planning: the creation of an internal termsheet so that it’s clear that the choices are, and what the trade-offs are behind each choice. This is particularly important with equity deals which contain a high number of variables.

2. Strong sector knowledge minimises false starts and faffing around with approaches that don’t make sense for the sector.

3. Inhouse background means that advice and work is grounded in the pragmatic.

4. Strong negotiation skills make for a substantially better deal.

5. Early preparation + speed of response mean that you are empowered. You are driving the deal: you’re not being driven.

Do Nothing. n/a

DIY. Depending on the size of the deal and the amount of work required (and the other calls on your time) this can be a viable option if you have been involved in similar deals in the past.

Appoint other external counsel. There are plenty of law firms that provide this service. Some of them are very good.

Usually a fixed price, based on scope and the value of the deal. But sometimes billed by the hour if there’s too much uncertainty for a fixed price (or if client has a strong preference for hourly billing).

It’s hard to measure ROI on legal spend for this kind of deal, but I expect your ROI to be at least 5x.