You've put in the work, put together the initial team, validated your product offering, and now the stakes are rising—fast. Customers are demanding more, investors are circling, and your team that is stretched thin is looking to you to lead through what's next. You are feeling the pressure and excitement of being on the verge of something big and you are ready to scale. Companies like yours are who our firm was built to serve. (read our archetype client story about Jordan)
Jordan leaned back in his chair, staring at the ceiling. His chest felt tight. His company had just closed its first six-figure ARR deal with a market-leading customer. A massive win. A game-changer. But instead of celebrating, his mind raced. The contract was signed—but could they actually deliver? The weight of the company’s future pressed down on him. Beneath the exhaustion, there was a charge of excitement. He was on the edge of something big. But if he took a misstep now, it could all fall apart.
The next morning, he walked into the office with renewed determination. They had to move fast. He gathered his co-founders, whiteboards filled with priorities. What could they deliver immediately? What had to wait? His team was already stretched thin, and they had a backlog of customer opportunities, but they didn't have the cash to expand the team. By midday, the weight of reality pressed harder. Two months. That’s all they had before cash ran dangerously low. There was no room for error. Then, an email notification . . .
From: Joe (Investor)
Subject: Let’s set up a call.
His pulse kicked up. Not a commitment. But movement. He forwarded it to his team: “We need our numbers airtight. No mistakes.”
That evening, he sat alone in the dim office, eyes locked on spreadsheets. Burn rate. Payroll. Vendor costs. Customer requests. Every scenario led to the same conclusion: they were running out of time. His coffee had gone cold. He hadn’t eaten since breakfast. The exhaustion gnawed at him, but he couldn’t stop.
The next morning, he paced the office, waiting for the investor call to begin. His team had prepped relentlessly. Their financials sharpened, sales funnel mapped, value proposition crystal clear. They were as ready as they could be.
The call started smoothly. The investor, a partner at a top venture fund, asked sharp questions. Jordan knew his responses landed as the investor nodded along. Then—the curveballs.
“We like what you’re building, Jordan. What’s your entity structure?”
“We’re an LLC,” Jordan answered.
A pause.
“That’s a problem. We need to see a C-corp before we can close. Your lawyers can handle that.”
Jordan’s stomach twisted. The founders had debated that issue. They chose an LLC for simplicity. Now, it was a roadblock. “We can make that transition,” he said evenly, though his brain was already spinning.
“Good,” the investor replied. “Also, how’s equity split among founders, and what’s your equity plan for early hires?”
Jordan hesitated. The truth? It was a handshake agreement. They’d always meant to formalize it. But there was always something more urgent. “We split equity evenly among founders and are finalizing the plan for early hires.”
The investor didn’t miss a beat.
“Even splits rarely work as they don't create the right incentives," the investor quickly retorted. "Those most responsible for the company's future success should have the most equity. You’ll need to fix that. And you’ll need a sizable option pool for employees. We’ll build that into the term sheet.”
Jordan nodded, writing it down, but his pulse pounded. He knew there was some issue with a large option pool creating a lower price for investors and dilution for founders, but he couldn't quite remember the details of the issue and what was considered "standard."
The conversation continued. "I'll send you a diligence request, and we'll need you to set up a VDR," the investor said. "I understand from our prior exchange that you want to close within the next couple of months; we'll need you to act fast on the diligence and VDR if you want to stick with that timeline,” he added.
The call ended. Jordan exhaled, but his body was rigid. It had gone well—the investor was talking about a term sheet. But, overhaul their entity structure, renegotiate equity with his co-founders, prepare due diligence response in a few weeks—all while keeping the company afloat and closing customer deals? And, what the heck is a VDR, he thought.
His co-founders and team were looking to him to make things happen. He was the leader. And, this was about more than funding—it was about building the foundation for scaling his company that he knows will be great one day. He wasn't sure who to turn to in order to vet his ideas and negotiate all the details. He needed someone who understands the issues and can help navigate through the obstacles to help make this vision happen.
