Does my investor have to give total investment up front?
I have an investor who will also be my partner. He has orally agreed to invest 50K in exchange for 49% ownership of co. Well we are getting ready to make out our written agreements & I am not sure if he will be investing 50k up front. He is making it sound like he will pay out the money as we need to pay for things. I am not comfortable with this as the percentage I am offering him is contingent upon the total amount of money he is investing. Also what if he decides that he changes his mind at 25k & wants to pull out.Is it customary for investors to invest a total amount all up front or do they sometimes invest little by little over the course of the start up?I see two options;invest total 50k up front for 49% ORinvest less for less percentage.What is "customary"? What would you suggest in my position?I am meeting with him tomorrow & I just want to be well informed before I make any decisions.Thanks!
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