Legal Question in Business Law in New York

Not having seen the contract language, this is usual, as there are usually no guarantees. This might be limited if there are contingencies that allow angels to be notified if certain criteria have not been met and they can withdraw any remaining funds.

Notwithstanding my colleague's answer, though the risk of loss exists, nonetheless the angel investor can seek a personal "good guy" guarantee from the principals, secure the assets of the business to the investment contingencies, seek a conversion of the investment into equity as well some other methods.

Feel free to contact me to if you need to review this agreement. My practice is focused on startups and investors.

Roman R. Fichman, Esq.

www.TheLegalist.com │ @TheLegalist

email: Info (@) TheLegalist (dot) com

t e l : 2 1 2 -- 3 3 7 -- 9 8 3 7

Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any matters addressed herein.