Structure deals correctly. Getting the money in the bank is a big step, but doing it the right way matters even more. This book provides easy to follow guidance for choosing and documenting the best funding structures for both your startup and your funding partners. As an added bonus, a promissory loan example is provided, with blow by blow details of each clause.
Hone your Friends and Family pitch.Additional sections provide concise information to help you prepare a compelling funding pitch, as well as explaining how to document your estimations of the market and financial feasibility of your early-stage startup.
Founder’s Pocket Guide: Friends and Family Fundingguides founders through topics such as:
• Structuring a simple startup loan with friends and family lenders.
• Using convertible debt to entice friends and family to invest in your startup.
• Learning the most important considerations for issuing stock to friends or family members.
• Understanding the legal limits of raising startup capital from friends and family.
• Keeping early funding rounds clean for later stage investors such as angels and VCs.
• Using profit sharing to rewarding friends and family investors for backing your startup.