Clean records before a seed round
Hunter Haines lists legal red flags that slow a seed financing once diligence begins, starting with a cap table that does not match the documents. Others include founder stock that was not properly issued, missing IP assignments and informal advisor or contractor arrangements. He says founders do not need a perfect legal house but should be organized and accurate.
“If the ownership story is hard to understand, investors will ask more questions.”— Hunter Haines, The Legal Red Flags That Can Slow Down Your Seed Round, Aug 2026
Do this
Check this week that your cap table matches the signed stock, SAFE, note and option documents, and collect any missing IP assignment agreements.