S1 E47 The Power of Due Diligence - What Successful Investors Want with Wayne Carroll and David Blackledge

Dealing with Investors - Speaker recommends upfront conversations and NDAs with investors before getting investments. - Emphasizes the importance of having an equity document in place. - Negotiating with investors for money is always a good thing. Key Insights: - Recruiters typically go to LinkedIn as the first step in recruitment. - Having more industry connections is important for effective recruiting. - Prioritize experience and context in advisors for valuable connections and networking opportunities. Choosing the Right Investors - Share plans, exit strategy, time to market, and investments with potential investors. - Having good advisors and angel investors is necessary to guide founders. - Fractional or part-time CFOs can assist with financial expertise. - Angel investors ask for board seats with investments of around half a million for 20% of the company. - Board seats give daily access to budgets and operations, allowing assessment of CEO suitability. - CEOs may be replaced if they are not suitable for the job. Conducting Diligence on Businesses - Speaker conducted diligence on businesses for an angel investor group of high-net-worth individuals. - Presented pluses and minuses of the business to investors during due diligence. - Enjoyed the due diligence aspect of the analysis the most. - Angel investors want enough control to replace the CEO if it's not a good fit for scaling. - Founders may be voted out of office if others can grow the business more effectively as they sell more equity. Special Guest: David Blackledge. David focuses his practice on startup and emerging businesses, particularly in various technology markets. This includes counseling business owners from entity formation through raising capital and company growth and on business associations with other partnerships, distributors, licensees, and general business relationships. David spent the first thirty years of his professional career in sales and operations management of high-technology startups giving him a unique perspective on advising business owners, investors, and others in the business world. David is an active investor in multiple angel groups and an Adjunct Professor in Law and Ethics at Grand Canyon University, as well as a mentor and judge in many Arizona-based business competitions. Website: davismiles.com/attorney/david-blackledge/ LinkedIn: linkedin.com/in/david-blackledge-7829a23 HOST: Wayne Carroll is a highly experienced intellectual property lawyer with over 15 years of experience. He holds a Juris Doctor degree with a concentration in Intellectual Property Law from Suffolk University Law School, as well as an undergraduate degree in Electronic Engineering Technology from DeVry University. Wayne is the CEO and Attorney at Inspired Idea Solutions, LLC, a firm he founded in 2013, where he specializes in patent strategy, patent prosecution, trademark strategy and registration, and copyright litigation. In addition to his legal work, Wayne is an Eagle Scout and actively volunteers with the Boy Scouts of America. He is also a proud father of six children and enjoys playing pickleball. Wayne's extensive experience and expertise in intellectual property law make him a highly respected attorney and a valuable asset to clients seeking protection for their intellectual property rights. Wayne can be reached at 480-741-2440 or [email protected]. You can also connect with Wayne on LinkedIn. Schedule an appointment with Wayne Carroll for a strategy session on protecting and leveraging your intellectual property.