Equity: Private investors will typically require some level of equity in your business in exchange for funding. The amount of equity will depend on various factors, such as the amount of funding required, the stage of your business, and the investor’s requirements.
Valuation: The valuation of your business will be an important consideration when negotiating with investors. This will determine the amount of equity the investor will receive in exchange for funding.
Board Seats: Private investors may require a seat on your board of directors or an advisory board to provide guidance and oversight on the direction of the company.
Voting Rights: Private investors may require certain voting rights to ensure their interests are represented in important business decisions.
Use of Funds: Private investors may require a detailed plan outlining how the funding will be used and may require regular updates on the progress of the business.
Exit Strategy: Private investors will typically require an exit strategy that outlines how and when they will be able to realize a return on their investment, such as through an acquisition or public offering.
Dilution Protection: Private investors may require dilution protection to ensure that their equity stake is not diluted by future rounds of funding.
Warranties and Representations: Private investors may require certain warranties and representations regarding the business, such as the accuracy of financial statements and compliance with laws and regulations.
