investment, investors, seedI have the possibility to get a seed money from family, but I already was advised that if it’s made wrongly can be a bad sign for professionals investors. I really want to make a contract doesn’t matter how close the family is, but should I sell a share? What are other possibilites?
I’m not a professional investor, but small business owner.
You need to decide is the money a loan to be repaid with interest, or an investment in your company, taking a percent, or having options that could be exercised in the future.
The loan obviously has no long term implications on ownership. Loans from directors are usually (depending upon local tax laws) required to be interest free. I’m not sure about loans from the FFF group. I suspect “reasonable market interest rates” would be feasible.
Perhaps an investor might want to have all the people with shareholdings still involved directly in the company, it is far easier to engage with restructuring. I would also consider having a shareholders agreement is you take that route.
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