Investing in a startup - how to arrange?
Suppose your startup works or a stunning idea that an investor is found, there is money and there is not enough important detail - how to formalize relations with an investor and more interestingly - how to formalize relations with a domestic investor.
Founders are usually not up to paperwork; they want to get financing faster and go to work. But life teaches that this stage cannot be neglected.
In most cases, the one who invests wants a significant or controlling (> 50%) share. In this case, the project organizer is alarmed, there are fears that control will be lost and the whole event will go in the wrong direction (or simply go to the side).
I invite the Habrovsk citizens, especially with experience in attracting or investing, to answer the question in a comment - what important points should be written down on paper?
Here are those moments that come to mind:
0) The procedure for investing is how to draw up money, how to prescribe cost control.
1) The separation of roles in the management - who, what decisions and in what composition make.
2) Preservation of intellectual property - the creation and participation in similar projects.
3) Profit - when you can "get" profit
4) The safety of the founders - in the broadest sense, from the usual "kid" to conflicts with the investor.
5) If an investor wants more than half (a normal desire for a person with money) - how to compromise?
There are clearly more bottlenecks and pitfalls. Leave in a comment - what problems did you encounter and how are they written in the documents?
PS: I checked Google - there were no specifics.
Founders are usually not up to paperwork; they want to get financing faster and go to work. But life teaches that this stage cannot be neglected.
In most cases, the one who invests wants a significant or controlling (> 50%) share. In this case, the project organizer is alarmed, there are fears that control will be lost and the whole event will go in the wrong direction (or simply go to the side).
I invite the Habrovsk citizens, especially with experience in attracting or investing, to answer the question in a comment - what important points should be written down on paper?
Here are those moments that come to mind:
0) The procedure for investing is how to draw up money, how to prescribe cost control.
1) The separation of roles in the management - who, what decisions and in what composition make.
2) Preservation of intellectual property - the creation and participation in similar projects.
3) Profit - when you can "get" profit
4) The safety of the founders - in the broadest sense, from the usual "kid" to conflicts with the investor.
5) If an investor wants more than half (a normal desire for a person with money) - how to compromise?
There are clearly more bottlenecks and pitfalls. Leave in a comment - what problems did you encounter and how are they written in the documents?
PS: I checked Google - there were no specifics.