Member-only story
What is a letter of intent? Who are they for? Are letters of intent outdated? Are they legally binding? How is it related to funding? How does it increase my conversion metrics as a startup?
Let’s take a look deeper into one of the important elements of startup conversion called letter of intent. We have come across this topic when one of our startup clients who is preparing for funding using www.venturx.ca suggested for more information about letters of intent and how it would affect his Conversion score on the VenturX tool. Let’s dive in and answer all those buzzing questions!
What is a letter of intent?
A letter of intent outlines the terms of a deal and serves as an “agreement to agree” between two parties. They are usually not legally binding but it depends on how it is written. Most partners, investors, merchants, etc.. tend to favour those that are not legally binding. Below, there are a few examples of letters of intent.
How does a letter of intent help me get startup funding?
Startups are always trying to defend their valuation of their business when it comes to funding. The truth is that most startups do not realize the gold and leverage they tend to have. Even when you cannot show revenue, you can certainly show traction. A written agreement proving the interest or partnership of another party is certainly a strong way to show traction. When you are…
