I can’t emphasize it enough, investors are not your friends, they are people who fund your business with an expectation of a return on their investment.
True to human nature, every investor probably want the highest ROI available. They will take over your entire business of you offer it in your desperation.
As a startup lawyer, I have realized that startups accept funding options that are detrimental to their long-term goals. How can you offer 40% equity in your business to an investor all for a #2,000,000 investment?
Isn’t that the biggest act of self-sabotage?
I mean, it’s not so hard to seek legal advice, it will definitely save you years of unnecessary business tension and litigation. More importantly, always try your best to get by without an investor for the first few years, put in your money, bootstrap, offer employee stock options instead of paying huge amounts of money(that you can’t afford) to employees for their skill and expertise.
And don’t forget to reach out to your legal representatives. We know how to protect your interests better than you do.