3 ms·
Ask HN: How to accept investment?
Hi HN,
I'm an undergrad with a startup idea. I have a possible individual investor who's interested in providing the seed funding I need.
However, I've never done a startup before, and the investor has never invested before. I did not know the individual before we talked about a deal.
Neither of us knows what to do. How do I responsibly accept the money while legally guaranteeing them their share?
Edit: should mention I'm based in the UK.
Thanks for any help!
- gharbad 15y agoTalk to a lawyer, preferably one that specializes in working with startups or small businesses.
- mtw 15y agoAre you incorporating soon?
- veyron 15y agoI think PG posted their financing documents: http://ycombinator.com/seriesaa.html http://ycombinator.com/seriesaa.html These were specifically designed for US C-corporations. The legalese obviously changes based on the company type [and may not be applicable -- for example, in the case of US LLCs] You will need to start a legal entity, and based on the arrangement you give them a portion of the company ie shares, or some sort of convertible note. Honestly I dont know much about UK companies, so you should start investigating the possible corporate structures.
- guynamedloren 15y agoI can't offer any advice (sorry!) but I'm terribly interested to know how the connection was made. Considering you didn't know eachother before and neither of you has any investment experience, this seems very out of the ordinary and unusual. Please share!