Investments 101 – By Sutter Law, San Francisco Business Law

Investments 101 – By Sutter Law, San Francisco Business Law

Investments 101 – Startups – Sutter Law  When your big idea with a small budget needed the extra boost to get to the market place, you figured it was time to take the next step. Your business plan: go big or go home. So far it has panned out well, as your wallet is so full you need an accountant to carry it for you, and you want to reinvest those earnings back into the future of your business. This is speed capital, a small but often risky investment from the pockets of company founders’, accredited friends and accredited family. Think of this investment as everything needed to nurture a seed into full bloom (yes, it’s corny—maybe it’s a seed of corn we’re nurturing here). Seed capital covers the gamut of all expenses needed to start your business before you bring in revenue, hence the risk.  However, for those willing to take this leap of faith, the payoff can be immense. None the less this is still an investment , it involves Security & Exchange Commission rules and therefore you should have a business attorney. Though similar, be careful not to confuse seed capital with angel capital, in which accredited investors provide a capital investment with a targeted goal of company success. This money is intended to ensure the progress and reaches of your grass roots enterprise rather than simply to increase the investor’s profit; it is an investment backing the entrepreneur more so than the company itself (yes, this is most likely the category into which your mother will fall). So you’ve taken the hammer to your piggy...