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Deals with angel investorsQuestion How do I structure a deal with an angel investor willing to invest in my startup business?
Answer Bringing in an investor is akin to a marriage: both have to want the same things and be willing to negotiate until you find out what works for all parties.
Deals with angels investors have significant variety and flexibility. Deals go from straight equity investment, to high-interest and high-risk loans (usually backed by equity collateral), to straight loans, and combinations thereof. What determines the deal is the mix between what you want and need and what your investor wants and needs. Investors have their own asset structure and investment strategies, plus tax situations. These have to mix with yours.
Brain Trust contributor:
Author of Hurdle: The Book on Business Planning
President, Palo Alto Software
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