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Write the Opening Recitals of the Investment Contract.Make Your "Whereas" Statements.List the Articles of the Agreement.Note the Payment Terms in the Investment Contract.Identify Any Deliverables.State the Term and Termination of the Contract.Show the Company Contacts for the Investor and Company.More items...?
Here are the steps to write a letter of agreement:Title the document. Add the title at the top of the document.List your personal information.Include the date.Add the recipient's personal information.Address the recipient.Write an introduction paragraph.Write your body.Conclude the letter.More items...?
By way of background, when someone invests in your business they are actually buying shares in your business in exchange for money. They can buy common shares or preferred shares. If your investor only gets common shares, then that means you are on equal footing.
Investor agreements generally cover any transaction that gives other people or businesses ownership interest in the company. This could be of interest now or into the future and could be in exchange for anything of value such as cash, labor, an asset, and more.
How to Convince People to Invest In Your StartupDo the thing you say you're going to do.Start small trivially small and then build up.Make three people love you.Ask for advice, not money.Be authentic.Consider an equity crowdfunding campaign when the time is right.Leverage the 'social proof' from crowdfunding.