As the founder of a startup, one of the first issues you need to address is how to finance your company’s operations. If you are lucky enough to be able to fund your startup out-of-pocket, or through generous family members, congratulations. You can probably skip the rest of this post and get back to building your business. However, if you are like most founders, you won’t be able to self-fund your company entirely and your revenues won’t exist yet, or won’t be adequate to grow the company. In some instances you may be able to obtain or if you have some type of hard asset or significant accounts receivable to use as collateral, you may be able to borrow from a bank.
This post addresses a common method for financing the growth of a tech startup – by selling stock in your company. What type of investor is right for your company – family and friends, angel investors, venture capitalists, or some combination of these – is something you will want to consider carefully. We’ll save that discussion for another post as it’s an interesting topic on its own.
Securities Law Basics
A corporate/securities lawyer will guide you through the stock financing steps>>> READ MORE at: