Angel Funding and Founder Weekly

Posted by on May 21, 2014 in Uncategorized

  A big shout out to the Founder Weekly Newsletter for supporting our Startup Crash Course: Angel Funding. The free weekly newsletter for entrepreneurs features the week’s best curated content, must read articles, how to guides, tips and tricks, resources, and startup events. Geek turned entrepreneur, Rahul Chaudhary (@rahulgchaudhary), culls through a sea of startup content and offers a finely distilled feed of startup news and links–well worth a spot in your...

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“I know I should, but…”

Posted by on Feb 25, 2014 in Blog, Friends and Family Funding, Uncategorized

More often than not, this is the answer I get when I ask an entrepreneur if he or she has documented a recent friends and family fundraising deal. Certainly some forms of startup funding require a good deal of paperwork and spending money on legal help—selling an equity stake, for example. Because it’s quick and easy to document simple loans and some other funding options, founders should fight the urge to procrastinate on this task. Easy and quick. You can execute a business loan using a one or two page promissory note, after negotiating a few basic terms. Once you and your friends and family (F&F) supporter agree about the general deal points, finalizing the loan with a promissory note logs the details of the loan, including items such as: Details about the lender and borrower The loan amount The interest rate The repayment structure The term of the loan Additional clauses of a promissory note help define: What happens if the borrower misses a payment How to handle early payoff of the loan How to modify the loan agreement if the parties agree Do it yourself? Many founders opt to complete the loan paperwork without the assistance of a lawyer or CPA. There are many promissory note examples...

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