We are a small 3 person startup, and have been working on a product designed for education. We presented a demo and the future concept to our family member who was interested in investing in our product and has agreed to invest $25,000 (USD).
Exciting! but, we aren't really sure where to go from here. I know that we need to speak to a lawyer at this point, but what kind? If anyone has a good recommendation for a lawyer in the bay area, forward me their info please.
Also, what about terms of the agreement? ie: equity agreements, shares, etc. Should these questions be answered by a lawyer?
The funding aspect of running a business is new to me and I want to make sure we aren't screwing anyone and that we are doing the right thing.
any pointers?
Thanks!
1. You didn't ask for the money, it is falling into your lap. Therefore you don't need this money. Why not wait until you need it?
2. If what you build is great and is a success, that $25K will still be there, and you'll have a better idea of what to use it for.
3. If you fail miserably (You don't even have a product to sell yet), the loss of $25K will strain the family. Without it, this problem doesn't exist, and you move on, possibly with $25K to use for something else.
Promise them that they will be the first investor when you decide that you need capital, and get back to actually building your product.