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How do I invest in a small biz I have followed/believe in? - Printable Version

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How do I invest in a small biz I have followed/believe in? - AmandaRob - 11-16-2021

How do I invest in a small biz I have followed/believe in?

There is a product I love/have loved for about two years. I have seen the founders truly hustle (something I don't have, don't hate me) and they impress me w/ their grit and positivity for what is truly a brilliant product that checks allll the boxes of a great product (fast-growing category, stellar packaging, sustainable practices, WOC-owned, easily fits alongside competitors/would not need tweaking other than SKUs).

I have experience raising money for a start-up (wore a lot of hats; worked between engineers/creatives to ensure everyone's on the same page) and have a few contacts in terms of getting the product SKUs/shelf-ready.

I have talked to the founders loosely/casually, mostly asking how much $ they need to go back to a D2C model they once had, etc. The number is not massive, I would be able to front this and I know I'd get my money back (also not in a mad rush to get it back). The founders have a lawyer, I do not.

How do I safely invest in this company? They are two people. I believe they both have day jobs. They are profitable but they are a VERY small operation. I would wager they net <500K/year which I am 100% OK with.

Do I ask them to discuss a contract w/ their attorney? Should I have an attorney that creates the contract for this?

Apologies to mods if this is the ttly wrong place for this.

submitted by /u/OnTheBeachOnMolly
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