Whats the risks of investing in someone who is 17, is forming his own business and is very ambitious??

Question

He has also had a lot of backing from his parents and has been in contact with sony, who are keen on his ideas.

He has invested 600£ on setting up his website and business and sorting out legal fees.

I am willing to invest anything from 60£-1000£.

How much should i invest and should i invest.

Answer 1

I would wait until he is legally an adult.

A minor can't enter into legal contracts, nor can he be sued if you find you need to do that to regain your investment.

You might want to check that out for where you live.

Answer 2

be careful,how do you know everything is on the up and up,how do you know Sony is interested.at 17 some are mature and ready to take on the world some just think they are,and even if all is well how do you know he is not going to get interested in a 17 year old girl and chuck all? your investment should not exceed his ,i believe i would look else where..............tom

Answer 3

In the USA, one needs to be 18 to enter into a legal contract, including set up a bank account, a business of any kind, etc.

The parents (in the USA) are taking on 100% of the liability for the minor).

I would like to see PROOF that "Sony is keen on his ideas."

Call Sony and ask if they know this guy. Prob not.

There also needs to be a legal structured set of documents when investing in a private placement. otherwise you will find you have little recourse.

USA SEC Reg D.

http://www.sec.gov/answers/regd.htm

UK legal securities law asst - attorneys

http://www.irwinmitchell.com/Business/Co...

Answer 4

If he is already showing that his ideas are worth something than I would inverst.  How much depends on how much you have to spare.

Answer 5

17 years old....

do you think hes gonna change his mind like the wind?

Answer 6

Never invest/risk more than you are willing to lose.

This could include friendship and money.

If it goes downhill and he goes and buys rounds for all of his friends losing every penny, will it have been worth it?

Even if you learned a valuable lesson?

If he goes and does his best and the business fails was it worth it?

Think deep and strong on this. Not saying he didn't listen to me, cause thats not what you are in it for. YOU TRUST HIM he did HIS best and it failed.

If he goes and makes a killing and you are in bottom floor and gets wealthy was it worth it?

All the best.

P.S.

Also in the US if a minor owns property and sells it especially to one who KNEW he was a minor, that minor could go, spend ALL the money and resquest AND receive his property back.

The contract COULD be voidable by the minor alone.. Same with BUYING property.

They aren't held as competant.

Keep that in mind as well.

How well do you REALLY know this person?