Raise Millions by Hustle Fund VC Page 121 And more documents. This can get more complex as you raise larger amounts of money. We recommend working with an attorney to make sure everything goes smoothly. Here are some other things you should expect. VCs may run a background check It’s pretty common for VCs to run background checks on founders before investing. They want to know if the founder has a criminal background or any active lawsuits that could put the business at risk. VCs might also run an OFAC background check. This is when they run the founder’s name through the Treasury Department database. They want to make sure the founder isn't aligned with terrorism or on any ban lists, sanctions list, etc. If the founder has a common name, this might trigger a false positive and they may need to clear things up with their VC. VCs will ask you to sign a side letter A side letter is a document outside of the SAFE / convertible note that outlines additional rights. You’ll likely see these two from VCs: 1. Pro Rata Rights — this allows the VC to invest more capital into your company in future fundraises typically on a “proportional” basis (the right to reinvest the amount required to maintain the equivalent percentage of equity as before). hustlefund.vc / @hustlefundvc