You definitely want to have a proper shareholder agreement and make sure any amateur investors understand the terms of it before going ahead. Some potential pr

You definitely want to have a proper shareholder agreement and make sure any amateur investors understand the terms of it before going ahead. Some potential problems: investors not understanding what kind of shares they have (probably non-voting) and expecting a say in where the company goes, investors expecting to be able to pull their money out or sell the shares when they feel like it, investors expecting dividends from your company when you want to retain all the profits. It's mostly about expectations, which can be managed if you're prepared up front.