BizSugar.com › Raising Capital › What to do When Dealing with Informal Investors

Raising funding from formal investors isn’t always an option for every startup.
Particularly for young or unproven entrepreneurs, informal investors can seem like much more attractive options. And these more informal options can certainly give your startup the boost it needs. But just because they’re informal investors doesn’t mean you should overlook some of the more formal parts of the investment process.
You need to protect yourself and your company. So when it comes to those informal investors, whether they’re angel investors or members of your extended family, it helps to set very specific terms.