I have someone who’s willing to invest in my business but they want to supply the services I’d be needing. Is this okay? Or should I pull out?
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I have someone who’s willing to invest in my business but they want to supply the services I’d be needing. Is this okay? Or should I pull out?
This sounds like a joint venture – Not a traditional investment. Be very careful with this type of deal. You need to perform lots of due diligence on this person. If he is a developer and he takes over development of your project You are in a very vulnerable position. If he already has a potential client base for your product, all the more reason to be concerned. Hire a lawyer to negotiate all details of this joint venture. Do not try and do this yourself.
This person is not an investor. Break off all communication immediately, don’t take his calls, don’t answer his emails, and don’t give him any more information about your product and launch cycle than you already have. This is a person who wants what you have, and is going to take it from you if you let him all in the name of investing in your business.