Raising Venture Capital in Canada and the US: Key Legal Steps for Entrepreneurs

Raising Venture Capital in Canada and the US: Key Legal Steps for Entrepreneurs, updated 9/1/25, 5:40 PM

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Smart founders spend six months fixing legal paperwork before fundraising, while others lose deals over unsigned IP assignments and missing founder agreements. The difference between closing venture capital and watching investors walk away isn't your pitch deck—it's your corporate housekeeping. Click here for legal guidance.

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Raising Venture Capital in Canada & the US:
Essential Legal Steps for Startup Success
Nine out of ten VC deals collapse during due diligence,
often because startups lack proper legal preparation.
Strong contracts and records are as important as your
pitch deck.
Sloppy governance kills deals.
Incorporation papers, bylaws,
board minutes, and shareholder
votes must be in order, proving
your company is legally sound
and ready for investment.
Messy spreadsheets of ownership won’t cut it. Clean cap tables, documented stock
grants, and standard vesting schedules build investor trust and protect against founder
disputes.
Every line of code, design, or invention must belong
to the company, not individuals. Signed IP
assignment agreements secure your startup’s
most valuable assets for investors.
Employment contracts, NDAs, and contractor
agreements prevent disputes. Proper classification
and tax compliance prove your team and equity
incentives are legally structured.
Start preparing six months before fundraising. Working with startup-focused lawyers ensures your
documents survive investor scrutiny and your deal closes smoothly.

https://pacelawfirm.com/corporate-commercial/complete-business-legal-services


https://pacelawfirm.com/corporate-commercial/complete-business-legal-services

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