

Ask HN: How to accept investment? - AshleysBrain

Hi HN,<p>I'm an undergrad with a startup idea.  I have a possible individual investor who's interested in providing the seed funding I need.<p>However, I've never done a startup before, and the investor has never invested before.  I did not know the individual before we talked about a deal.<p>Neither of us knows what to do.  How do I responsibly accept the money while legally guaranteeing them their share?<p>Edit: should mention I'm based in the UK.<p>Thanks for any help!
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gharbad
Talk to a lawyer, preferably one that specializes in working with startups or
small businesses.

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veyron
I think PG posted their financing documents:

<http://ycombinator.com/seriesaa.html>

These were specifically designed for US C-corporations. The legalese obviously
changes based on the company type [and may not be applicable -- for example,
in the case of US LLCs]

You will need to start a legal entity, and based on the arrangement you give
them a portion of the company ie shares, or some sort of convertible note.
Honestly I dont know much about UK companies, so you should start
investigating the possible corporate structures.

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guynamedloren
I can't offer any advice (sorry!) but I'm terribly interested to know how the
connection was made. Considering you didn't know eachother before and neither
of you has any investment experience, this seems very out of the ordinary and
unusual. Please share!

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mtw
Are you incorporating soon?

