Does incorporating in New York discourage angel/VC investors?

My answer to Does incorporating in New York discourage angel/VC investors?

Answer by Raad Ahmed:

As others have indicated, incorporating in New York is not considered a bad thing, but Delaware does offer benefits that are attractive to investors. You will likely find plenty of investors that aren’t discouraged by the location of where you choose to incorporate, but those that do will likely tell you before discussions get too detailed. It is likely if you have your business incredibly organized, then other factors will pale in comparison. Your goal will be to attract as many quality investors as possible so that you have more options to choose form when it comes to selecting which one(s) to work with.

The main things that quality investors look for:

  • Good odds in the marketplace
  • Product or services that solves a problem
  • Quality business plan
  • Momentum to produce results

Location of where you incorporate may play a role for some people, and if it comes to that then you can either choose to not work with those individuals or consider incorporating in a different location.

A business attorney can assist you with this process. LawTrades can connect you with a seasoned business attorney that can help you make sure your business is organized and in the best situation to attract investors. We pride ourselves in the fact that we’ve helped over 1000 entrepreneurs just like you! Contact us for a free consultation.

Does incorporating in New York discourage angel/VC investors?

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