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Reply To: I received an unusual investment offer – need advice ! 

 

By  Matthew King

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Avatar of Matthew KingMatthew King
Keymaster
  • Total Post: 146
Points: 1,743
Business Consultant 1

Hey Alex,

 

This does sound like a great opportunity. What does through me off here, is that he wasn’t super interested in profitability of your company. I would definitely hire some help with this and speak with law attorneys if you want to take this on.

I would also make sure to get NDAs signed before you go too deep into your company with your possible investor. You’ll want everything in writing…do not rely on verbal agreements. It is pretty normal for someone to invest in your company and basically they gain equity in your business (which in turn nets them more than they invested).

You’ll definitely want to make sure the investment structure is clearly laid out. I wouldn’t accept anything that isn’t crystal clear about the investment (aka, pay back or not, or get equity, etc.)

So, don’t move forward until that is fully stated and written.

The second part is mainly just taking the time to answer a simple question. Do you really NEED and WANT the investment?

You weren’t looking for an investor and this one just kinda popped up.

Third, what other value does the investor bring? Is there something there other than cash. Does the investor have important contacts in several industries, can they give business advice, etc?

Let me know if this helps.

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