I have an Angel Investor......

Question

I have a friend that is willing to invest in the startup of my business idea. He is offering me to share his retail location because his products can be combined with mine in a single store and he is going to invest in the merchandise I will sell. I'm a little confused by the term angel investor and if in fact he is one. So, he invests in my merchandise and offers me part of his retail location. Does this mean we are partners? Does this means he owns the business? What percent do you think I will own? How about the sales revenue? Please help!!

Answer 1

Honestly, if I were you - I would contact a lawyer before signing anything or entering into any contracts with this person, even if it's a friend.  You have to be so very careful these days and take into consideration ANY consequences you  may encounter with this person.

What's it going to cost you...$25 - $75 maybe to see a lawyer about this...w/e it is - your future depends on it...don't take this huge risk.

...even if everything is ok, at least you will know all the legalities about it.

goodluck.

Answer 2

With starting ANY business, you should see a CPA.  A lawyer will be expensive and he isn't real tight on financial information.  No one here will be able to tell you exactly what to do because we don't know all the facts.

GO SEE A CPA!

Answer 3

It may or may not mean those things hun, it all depends on what he thinks it means and what the contract is that is drawn up.

It could be that he's letting you use his store and investing in the merchandise and you pay him small rent and percentage.  Or it could mean he pretty much owns it all.

What you need to do is talk contracts, and then have a lawyer look over the contract before signing.

It may very well be a great opportunity for you!  but you need to be careful, so good luck :)