

Ask HN: Things to consider when choosing an investor? - jpd750

HN-<p>I don't even have a product yet, but did a quick pitch on the phone to an investor and he is potentially interested in investing in a MVP-level version of the product.<p>What are the most important things to consider with choosing an investor (considering you have the choice) ? What should I be looking out for?<p>Thanks!
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mchannon
Terms, terms, terms.

Also, ask yourself (and perhaps the investor) what would happen if in three
years, that money's gone, your product tanks, and have to get yourself a job.
There are many investors who get emotional and make it their life's work to
torment you when things go south, no matter what they sign or what they
promise. Some are even accredited, but making sure they're accredited will
limit your exposure to this eventuality. (They should have forms they can fill
out and give you to prove it).

If the investor passes that test, then as long as you can live with the terms
(convertible notes are always best if you can get them versus straight
equity), close 'em and get building!

