Investor Toolkit

Family discussion checklist

Use these prompts to keep enthusiasm, evidence, ownership and consent distinct. The blank boxes are designed for a printed copy; this page does not collect or save responses.

• Are we comparing a private startup investment with lending or listed shares, or are we only trying to understand the idea?
• Who would legally own the investment, use their own money, and make the decision?
• Can everyone describe the instrument, ownership rights and possible later dilution in their own words?
• What evidence supports the company’s customers, product, revenue and use of funds, and what remains unverified?
• Could the actual owner lose the full amount and leave it unavailable for an unknown period without affecting family obligations?
• Who may say no, pause for advice, or leave the conversation without pressure or blame?
• What questions require separate qualified U.S. and India legal, tax or financial advice before anyone acts?

Plain-language glossary

Angel

An individual who invests personal money in an early-stage company, usually in exchange for an ownership interest or a security that may convert into one. The label alone does not say what rights, risks or role the investor has.

SPV

A special-purpose vehicle: a separate legal entity formed for a defined purpose, sometimes to hold one company investment on behalf of several participants. Its documents, manager, fees, rights and tax treatment matter; the label does not make the underlying investment safer or liquid.

Fund

A pooled investment vehicle that accepts capital under governing documents and invests it according to a stated mandate. Investors generally hold an interest in the fund, rather than choosing or directly owning each portfolio company; the documents describe control, costs, duration and distribution rules.

Carry

Short for carried interest: a share of certain fund profits allocated to the fund manager under the fund’s agreement and subject to its terms. It is distinct from management fees, and does not guarantee that a fund will make a profit.

Liquidity

The ability to turn an asset into usable cash. Private startup shares and fund interests can be difficult or impossible to sell when an owner wants; a quoted valuation does not itself create a buyer or a cash payment.

Deal-review checklist

Review the actual offer and the actual owner’s circumstances. A checked item is not a diligence sign-off or an approval.

• Identify the issuer, security or instrument, intended legal owner and exact documents being offered.
• Read the governing documents, not just a summary or verbal description; note rights, fees, expenses, transfer limits and decision-making authority.
• Ask how the stated ownership is calculated, what could dilute it in later rounds, and what information or voting rights actually come with it.
• Separate evidence from forecasts: verify customers, product use, revenue claims and use of proceeds where possible.
• Ask about conflicts, related-party interests, intermediaries and everyone receiving compensation.
• Assume there may be no practical way to sell or withdraw on a preferred timetable; a future financing or exit is uncertain.
• Assess the total possible loss against the actual owner’s near- and long-term family obligations and cash needs.
• Ask qualified professionals to review U.S. offering eligibility and the relevant India–U.S. legal, tax and transaction questions for the actual parties.
• Record who is deciding, who is only discussing, and that each person can decline without pressure.

Accredited investor: one question, not a green light

The U.S. Securities and Exchange Commission describes accredited investors as a defined category relevant to some private offerings. Its rules provide different ways a person or entity may qualify; which criteria matter depends on the actual investor and offer. Read the SEC’s accredited-investor explanation directly. This page does not determine anyone’s status.

Keep these three questions separate:

1. Accreditation: Does the relevant U.S. offering allow this actual person or entity to participate, and what eligibility criteria apply to this offering?
2. Ability to absorb losses: Could the actual owner lose the full amount and have it unavailable for an uncertain period without compromising family obligations?
3. Cross-border permission: Can these particular parties and this transaction participate lawfully and meet applicable requirements in each relevant jurisdiction? Take the facts to qualified U.S. and India professionals.

A U.S. relative does not by itself determine another person’s eligibility, ability to absorb losses or cross-border permission. Accreditation alone is not a recommendation, proof of suitability, or permission to proceed. Do not treat another person’s account, a transfer or a family relationship as a substitute for advice about who is actually investing.