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Finding investors

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Thread replies: 6
Thread images: 1

So lets say I find an investor for my startup. I don't have own money at all. What happens if the startup is not successful, would I end up with debt? Or is it only risk for the investor? How does that work?
>>
investors risk, good luck with finding one tho
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Would I have to pay back money that I saved during the adventure?
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>>1548507

depends on the contract you sign with your investor.
>>
>>1548464
Most investors aren't just going to give you money and go away.

In some experiences I've had they were always up my ass. In others they were pretty confident in my abilities and idea.

Unless you promised them an IOU then they are only entitled to what you promise they get out of investing. It's entirely up to you to negotiate what you want to give your investors. Most want %s. Some want a right to use your product/software in their stuff. Some want benefits to being apart of the startup such as if you actually hit big leagues they are going to want a position in your company as you hit big league.

I would read some articles on how NOT to overpromise what you will give them. That's typically a rookie mistake, and also always have EVERYTHING in writing and signed. If its not signed it ain't valid.

Another piece of advice is to make sure you really are going to try your best with your startup. If you ruin your name you will never ever get another shot with investors as your name will be shared. But if you try your absolute hardest and even if you fail then they will of course be pissed, but they can't shame you for doing shitty work.
>>
I deal with hard money lenders when I have no other choice for real estate deals.

It fucking sucks. And that's with something that sort of functions as collateral. Dealing with capital investment for ideas is a shit show. If you slip up, even a little, expect to get fucked.

Always, ALWAYS have a lawyer go through the contract. Not their lawyer. Your lawyer. The last thing you want is to be screwed because you didn't do something idiotically specific.

>>1548507
Theoretically it's possible to do this.

In practice, your contract will make this fraud, and if it's any amount of money that isn't effectively pocket change, you will have people with a lot more knowledge and experience than you have gunning for you to face criminal charges for fraud/embezzlement.

Unless you have an already existing reputation, the contract will make it abundantly clear that they are the top priority to be repaid.
Thread posts: 6
Thread images: 1


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