Long story short, I’m ready to begin raising money from family and friends to begin building a product. But of course I’ve never raised money, and am not sure what kind of due diligence is necessary. Do I need to hire a lawyer? Can I outline an agreement myself promising a certian percentage on the company for their investment? Do I incorporate first, or raise the money first then incorporate and designate them as share holders?
I bootstrapped my first two companies with a partner, and never had to go through this process. This company will need some runway though, so I’m trying to figure out where to start.