Buttoning up, Legally
Is Your Business Ready for an Investor's Review?
Please read the below information before taking the quiz.
On the road to becoming a successful startup, you're going to have to have a lot of tough conversations with people that are going to hold you accountable. Vendors, customers, and employees may hold you up to scrutiny, but the toughest may be investors. Where other parties that you deal with may want to "kick the tires," investors are going to want to take the disassemble and reassemble the entire vehicle. It may be frustrating for the founders to go through that kind of examination, but considering how many startups fail even when they are doing things right, you can hardly blame the investor for trying to find out as much information as they can. Because it's always good to know what to expect in this startup game, we made this quiz.
This quiz is designed to give its taker an idea of the kinds of questions that may be asked by a investor (or the investor's attorney) during a due diligence. The results of the quiz will give the quiz taker, at least by our measure, some idea as to whether or not they are ready to speak to private investors about their business. This quiz is not intended to be an exhaustive list of every question that an investor may have, nor should its results give the taker an indication that they are indeed suitable for investment. This exercises is merely meant for educational purposes, to give the taker the experience of answering the types of questions that they are likely to encounter during an investor due diligence. YOUR SCORE ON THIS QUIZ IS NOT AN INDICATOR THAT YOUR STARTUP IS A GOOD, SAFE, APPROPRIATE, OR OTHERWISE SOUND INVESTMENT, NOR IS IT AN INDICATOR THAT YOUR BUSINESS IS SOUND, GENERALLY. BEFORE ALLOWING ANYONE TO INVEST IN YOUR BUSINESS, PLEASE CONSULT WITH AN ATTORNEY TO MAKE SURE YOU ARE OPERATING IN ACCORDANCE WITH SECURITIES AND OTHER STATE AND FEDERAL LAWS. When you've completed the quiz, make sure to take a look at Five Major Issues Investors Want to Discuss With Startups, as it might give you some insight into why we asked some of the questions we asked. If you have any questions, or you'd like to speak with one of our attorneys, please contact us at email@example.com. Enjoy!