Great question. Most of the time, investors expect all of the $500K to go into growing the business, not back to the founders. They’re putting money in to fuel traction, not to pay you back.
If you’ve loaned money to the company, that’s fair game to flag. You can document it properly, and sometimes a small portion of the round can be used to repay that. But, it has to be SUPER transparent and something investors agree to.
Lost opportunity income, though? That's gonna be a really tough sell. Founders are expected to take that risk and make it back on the equity side, not the raise. Personally I'd think twice before even suggesting this.
No matter what you decided to do, be super clear about where the money’s going. Keep most of it focused on growth, and if you want to pull a bit out to square up some of the founder loans, just be upfront.
Great question. Most of the time, investors expect all of the $500K to go into growing the business, not back to the founders. They’re putting money in to fuel traction, not to pay you back.
If you’ve loaned money to the company, that’s fair game to flag. You can document it properly, and sometimes a small portion of the round can be used to repay that. But, it has to be SUPER transparent and something investors agree to.
Lost opportunity income, though? That's gonna be a really tough sell. Founders are expected to take that risk and make it back on the equity side, not the raise. Personally I'd think twice before even suggesting this.
No matter what you decided to do, be super clear about where the money’s going. Keep most of it focused on growth, and if you want to pull a bit out to square up some of the founder loans, just be upfront.