A founders' agreement is a document created by the founders of a company to establish how the company will function. It is the product of pre-incorporation discussions that should take place among the company's founders before they establish the company. It includes provisions on ownership structure, decision making, dispute resolution, choice of law, transfer of ownership, ownership percentages, voting rights, intellectual property rights, and more.
To know if a convertible note fits your investment style, consider your financial goals, risk tolerance, and how much you believe in the startup. It’s all about finding the right match for your investment strategy.
Yes, you can negotiate the terms of a convertible note. Think of it like bargaining at a flea market. You have to find common ground that works for both you and the startup.
Investing in a convertible note can be a bit of a gamble. It has potential rewards but also carries risks. It’s wise to do your homework and think about how much risk you’re comfortable taking.
When checking out a convertible note, keep an eye on interest rates, conversion terms, and maturity dates. These terms can make a big difference in how your investment pans out.