A convertible note keeps you and the founder from actually having to price the value of the company today (which no-one can really do anyways). Do: See if the

A convertible note keeps you and the founder from actually having to price the value of the company today (which no-one can really do anyways). Do: See if the shares convert to common or preferred (you REALLY want preferred, thats what investors get - and at this stage you're an investor, of your time). Also protect both of yourself with goals that are well thought out, and make sense. Also remember that tasks like "Grow top line revenue by 30%", etc can actually be very difficult to do at first. Potentially make it based on # of quality hours put in. Do Be ok with the fact that there is only a 1/10 chance that you'll see much if any money out of the deal. Do ask about existing other shareholders, a plan for revenue, and the sales approach. Do look at the revenue model.