Raising capital is one of the most crucial milestones in any startup’s journey, yet it’s also where many promising ventures stumble. The difference between a successful funding round and a missed opportunity often comes down to preparation – having the right legal structure, understanding what investors actually want to see, and knowing how to position your business for not just this round, but the next one too.

Whether you’re preparing for your first seed round or gearing up for Series A, the legal complexities can feel overwhelming. Valuation caps, liquidation preferences, anti-dilution provisions – these aren’t just buzzwords, they’re terms that will directly impact your ownership and control as your company grows.

Here are four tips for raising capital:

  1. Match your funding source to your stage – Friends and family work for early validation, angel investors for proven concepts, and venture capitalists for businesses with solid revenue and customer traction.
  2. Prepare your documentation early – Have solid financial statements, a compelling business plan, and a clear pitch ready before you start approaching any investors, whether banks or equity partners.
  3. Know your numbers inside out – Be crystal clear on exactly how much capital you need and specifically how you’ll use it – investors want to see detailed planning, not rough estimates.
  4. Consider the trade-offs carefully – Debt financing means repayment obligations but keeps ownership intact, while equity funding brings expertise and networks but dilutes your control permanently.

Ask a Cap Raising Lawyer: Seed, Series A and Beyond

As a startup or business owner, you’ve probably got specific questions about navigating these funding challenges. What legal structures work best for different types of raises? How do you protect your interests while attracting investors? What mistakes could derail your entire round?

Join LegalVision’s free webinar on Tuesday, 23 September at 12 pm NZST for direct answers to your capital raising challenges. Pre-submit your questions or ask them live as Georgina Toomey (Managing Director) tackles real founder concerns and explores:

  • key considerations for seed funding rounds;
  • navigating Series A investment processes; and
  • planning for future funding rounds beyond Series A.

If you are unable to attend, you can still register, and LegalVision will send you a copy of the recording. You are also eligible to receive a free legal consultation.

Register for free today.

About Georgina Toomey

Georgina is the Managing Director for LegalVision New Zealand. She specialises in corporate and commercial law. She has significant experience, having previously worked in the specialist corporate teams at a number of top-tier firms in New Zealand and acting for clients in a variety of industries.

About LegalVision

LegalVision is a commercial law firm transforming legal services. The firm’s unlimited legal services membership provides businesses with a faster, better quality and more cost-effective client experience. Visit legalvision.co.nz or call 0800 005 570 to get in touch with our team.

Insights from the team at LegalVision.


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