Terms, terms, terms. Also, ask yourself (and perhaps the investor) what would happen if in three years, that money's gone, your product tanks, and have to get

Terms, terms, terms. Also, ask yourself (and perhaps the investor) what would happen if in three years, that money's gone, your product tanks, and have to get yourself a job. There are many investors who get emotional and make it their life's work to torment you when things go south, no matter what they sign or what they promise. Some are even accredited, but making sure they're accredited will limit your exposure to this eventuality. (They should have forms they can fill out and give you to prove it). If the investor passes that test, then as long as you can live with the terms (convertible notes are always best if you can get them versus straight equity), close 'em and get building!