Pieter: I've done this with 3 startups I founded in the last 10 years, and it worked out great. As the other commenters have correctly pointed out, it can't be just a selfless giving: there must be a budget and thus a limit.
Regarding investors: in fact, it's very common to fund startups being indebted to its founders. There are two major options: - investor pays off the debt of the company to you (not uncommon, but not at low 6 figures' investment) - nothing happens, i.e. the company is still indebted to you. That's clearly a liability (especially if the promissary note clearly indicates that the company must pay interest, say, 6%). This is the most common outcome. This amount remains as a liability on the balance sheet and you contemplate the sale of the company to get your money back. Maybe. On Fri, Jul 24, 2009 at 1:41 PM, Pieter <p...@ppeach.com> wrote: > > Advice so far is that loaning capital to your company is probably the > way to do this, but am wondering if this is the only way. I know that > poorly documented expenditure will negatively effect the valuation of > the company down the track, so anything that keeps it as simple as > possible should hopefully improve the reliability of records kept. > -- Max Kraynov Mobile Entertainment Guru mobile: +61 4 3460 9175 --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Silicon Beach Australia mailing list. Discussions guidelines: http://groups.google.com/group/silicon-beach-australia/browse_thread/thread/bc43d028e122852a No lurkers! It is expected that you introduce yourself: http://groups.google.com/group/silicon-beach-australia/browse_thread/thread/99938a0fbc691eeb To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en -~----------~----~----~----~------~----~------~--~---
