Funding your company is paramount. At what price, do I value my idea? How should I structure incoming financing from investors? These are just some of the questions you should be asking yourself before you start negotiating terms with your future investors. For newbie start-up founders, this is an important hurdle to overcome, especially if this is your first time in the game. Not to worry though, there’s a slew of relevant content out there to get you up to speed, and your start-up attorney, assuming he/she knows a thing or two, can guide you through the weeds.
As a basic primer though, there are two commonly used vehicles to get money in the bank. Issuing promissory notes and outright selling a portion of your company based on a estimated valuation of your idea. Notes and equity will be your knights in white satin so to speak. They differ and choosing which is better for you is based on your individual situation, so it would be good to familiarize yourself with them.