So I am planning on buying shares of an early startup which is doing an internal round funding and I got the opportunity to invest. This is my first time investing and would want to know what are things to consider and what I should ask the startup for before I hand in a cheque.
After researching their history, would you buy a used car from the founder(s)?
Do you understand their marketing story and believe in it?
Cut their earnings forecast for the next 3 years in half ... would you still invest?
Will you be comfortable with your rights as a shareholder compared to others?
What are the exit options?
If you feel unhappy with one of the answers to these questions: don't buy