I learned the hard way that it’s best to pre-fill the investor documents.
Once I had an investor who committed $600k (verbal and in writing), but then in the subscription document wrote $200k. He wired $200k, and I couldn’t get hold of him again until months later. So that left a $400k hole in the cap stack.
So, don’t just send subscription documents to the LPs with all blank fields and expect them to flawlessly fill in name, address, entity type, accreditation status, EIN, and - critically - the investment amount ($).
Instead, pre-fill your investors’ documents to:
- Prevent errors
- Expedite signatures
- Ensure investment amount
- Simplify their lives
This way the investor receives a completed DocuSign, where the only action is to verify and sign. One-click investing.
