What to keep in mind
Organize ownership, books, material contracts and financial information, then negotiate investment terms, reporting, exit protections and formal approvals.
An attractive valuation may not offset governance provisions that obstruct management or create indefinite exit obligations.
Distinctions often confused
A subscription for new shares differs from an investor purchasing existing shares from a shareholder.
Frequently asked questions
What will an investor review before contributing capital?
Ownership, financials, contracts, liabilities, management and governance arrangements.
Can an investor be granted special rights?
Potentially, within legal and bylaw limits and with clear rules to prevent future conflict.
Informational content. It is not a substitute for professional advice.