From a completely biased perspective, I’d nominate the nascent and not yet completely visible rise of online equity investing platforms.
Articles by David S. Rose
For a sophisticated investor, there are none, because an uncapped note just doesn’t make sense (see my answer to “If a startup’s valuation is $x, how much larger should its cap on a convertible note be?”)
There is no standard thing called an “Investors Contract”, and it sounds as though you are trying to re-invent the wheel here. It also sounds as though you are doing all of this yourself, instead of using an experienced lawyer…which is a very, very bad idea. Read more
Equity dilution works when the same pie is divided among more people. The Founder of a company starts by owning all the shares representing ownership of the company. Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.) Read more
When you create a profile on Gust, you immediately get emailed a link for a free download of Bill Payne’s excellent book “The Definitive Guide to Raising Money from Angels”, which is an excellent overview of the whole process. Good luck!
*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *
The challenge you face is that there are other amazing ideas out there. Actually, there are many, many, brilliant, wonderful, amazing ideas out there. So faced with all these amazing ideas, investors invariably choose the ones that have been reduced to practice, developed traction of some kind and proved that they are amazing businesses, not just ideas. Read more