{"id":2458,"date":"2026-05-11T12:06:40","date_gmt":"2026-05-11T17:06:40","guid":{"rendered":"https:\/\/alphatechcounsel.com\/blog\/?p=2458"},"modified":"2026-05-11T12:06:40","modified_gmt":"2026-05-11T17:06:40","slug":"not-understanding-the-basics-of-investor-deal-structures-2","status":"publish","type":"post","link":"https:\/\/alphatechcounsel.com\/blog\/not-understanding-the-basics-of-investor-deal-structures-2\/","title":{"rendered":"Startup Mistake 8 of 13: Not Understanding the Basics of Investor Deal Structures"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2458\" class=\"elementor elementor-2458\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e40298e e-flex e-con-boxed e-con e-parent\" data-id=\"e40298e\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5a96348 elementor-widget elementor-widget-text-editor\" data-id=\"5a96348\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p data-start=\"0\" data-end=\"190\">Raising capital is not just about closing the deal. The structure of that deal can affect dilution, control, future financings, and what founders and employees ultimately receive in an exit.<\/p><p data-start=\"192\" data-end=\"348\" data-is-last-node=\"\" data-is-only-node=\"\">In the video below, Matt Storms explains why investor deal terms matter beyond valuation and what founders should understand before raising outside capital.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bfb84f9 elementor-widget elementor-widget-video\" data-id=\"bfb84f9\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/ou64FSw9e6k&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8968b8f elementor-widget elementor-widget-template\" data-id=\"8968b8f\" data-element_type=\"widget\" data-widget_type=\"template.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-template\">\n\t\t\t\t\t<div data-elementor-type=\"container\" data-elementor-id=\"1965\" class=\"elementor elementor-1965\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t<div class=\"elementor-element elementor-element-332c6ba5 e-con-full e-flex e-con e-child\" data-id=\"332c6ba5\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7b808475 elementor-widget elementor-widget-text-editor\" data-id=\"7b808475\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center;\">If you have questions about any of these issues or want to discuss your specific situation, you can schedule time with our team here:\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3acad1de elementor-widget elementor-widget-html\" data-id=\"3acad1de\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"calendly-link-wrapper\">\r\n  <!-- Calendly link widget begin -->\r\n<link href=\"https:\/\/assets.calendly.com\/assets\/external\/widget.css\" rel=\"stylesheet\">\r\n<script src=\"https:\/\/assets.calendly.com\/assets\/external\/widget.js\" type=\"text\/javascript\" async><\/script>\r\n<a href=\"\" onclick=\"Calendly.initPopupWidget({url: 'https:\/\/calendly.com\/mstormsalphatechcounsel\/introductory-call-w-alphatech-counsel-clone'});return false;\">Let's Talk<\/a>\r\n<!-- Calendly link widget end -->\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-b644826 e-con-full e-flex e-con e-child\" data-id=\"b644826\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4a7434d elementor-widget elementor-widget-text-editor\" data-id=\"4a7434d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center;\">Learn more about venture capital terms using our glossary:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aead311 elementor-widget elementor-widget-html\" data-id=\"aead311\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"glossary-link-wrapper\">\r\n  <!-- Glossary link widget begin -->\r\n    <a link href=\"https:\/\/alphatechcounsel.com\/glossary.html\" target=\"_blank\" rel=\"stylesheet\">Glossary<\/a>  \r\n<!-- Glossary link widget end -->\r\n<\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>A weak grasp of investor deal structures can leave founders surprised by dilution, control terms, and sale outcomes later on.<\/p>\n","protected":false},"author":2,"featured_media":2171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[176,16],"tags":[],"class_list":["post-2458","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-negotiation","category-raising-capital"],"_links":{"self":[{"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/posts\/2458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/comments?post=2458"}],"version-history":[{"count":4,"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/posts\/2458\/revisions"}],"predecessor-version":[{"id":2462,"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/posts\/2458\/revisions\/2462"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/media\/2171"}],"wp:attachment":[{"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/media?parent=2458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/categories?post=2458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphatechcounsel.com\/blog\/wp-json\/wp\/v2\/tags?post=2458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}