FREE online courses on Venture Capital Funding - Major Sections of a Business Proposal - Litigation

 

Describe any litigation the company may be involved in, including suits against the company and those, the company has filed against others. Be sure to mention any potential litigation that may be contemplated. Venture Capitalists are litigation shy. If they find that a company has been involved in a great deal of litigation, they are apt to turn down the request for funds. After all, if everybody is suing you, there must be something wrong with the way you operate your company.

 

On the other hand, if you are the type who sues others at the drop of a hat, there must also be something wrong. The Venture Capitalist will have every reason to wonder whether you'll end up suing him very soon after he has made his investment. A company with a history of litigation will have to explain the details to the Venture Capitalist in order to help him overcome his natural reservation about companies with such a background.