The Public Filing “Announcement”
When you close a private financing, there are filings that should be made and in some cases must be made. A week or two after you make the filing, the information becomes public and you have announced your financing.
There are ways to keep a financing quiet and avoid these filings and we have been involved in financings where that was done successfuly. But unless you specifically request that your lawyers keep the financing quiet, you are most likley going to have your fundraising effort in the public record.
And this can catch you off guard. If you want to control the message and announce the financing to your employees first so they don't read about it in the tech blogs, you need to be aware that the clock is ticking and you need to get the word out fairly promptly.
This issue got us yesterday. We had a public filing disclosed. And due to legal issues we can't comment on it until next month sometime.
This is not ideal. So when you are getting close to finalizing a funding transaction, be sure to talk this issue through with your lawyers so that you are in control of the substance and timing of the message.
In short, do as I say, not as I do 😉