April 26, 2019

#ASK-IH would you use this product?

Yuri Alves @YuriGuernsey

Do you need some investment but your product isn't big enough yet? Or are you looking to invest into a startup for a small price? Well SeedStart is an upcoming product, that lets founders sell small shares of their product and any income the product gets, a percentage of those profits goes to the investors.

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    Sounds nice! The only thing I would be worried about as a user are the legal issues. Is this online contract legally binding in every country? How do you know their profits as an investor? And what if the company always reinvests their income, then they never have profits in the legal/financing sense.

    Just my 2 cents, maybe it helps :)

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      I know there are various legal issues, however I plan to involve some lawyers to help me through this.

      Essentially yes, I will try to make it so all the legally binding contracts work globally.

      We will know the investors profits as we will be synced with their stripe, PayPal or whatever service they use to store their income from their product. This bit is a bit risky due to we are going to trust that the company will not con any investors out, however we will have a term in the contract that states if the company is earning income and hides it from its investors on purpose, so that they don’t have to pay, they can be take to court.

      As for your final question, the company won’t lose profits due to the company doesn’t pay its investors their investment back, they pay a percentage of the share the investor has. For example if I invested £1 in a company for a share of 10%, I should get 10p

      I hope that answers your questions. Also thank you for the feedback and questions.

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        yeah I'm also curious about this. Which "court" would you go to? It's the same risk when you pay anything online, there's not much you could do. However it gets even more serious when you pay a big sum of money as an investment, then the founders could just simply run away :)

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          Well I am not sure at the moment, however I will most likely discuss this with the lawyers, but I would would presume that it would be the court in your country or state that the company resides in.

          That is a good point. I am thinking of a way to prevent this, as I don’t want any investors to lose any of their money. The plan for now is to specify in the contract that if they do such a thing they will be prosecuted, but I am looking at other procedures to prevent that before releasing the product.

          If you or anyone has any ideas to prevent this, please do comment below. As my main goal with this product is to protect the investors as much as possible. And to help fund small businesses and products.

  2. 1

    I do need that. Would that be remote investment?

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      Of course.