In the beginning or seeding stages of your company, you likely won’t receive support from angels or institutional investors. First you’ll be bootstrapping and raising money from your close family and friends. As your company grows, angel investors may want to invest, but will want equity in your company in return for stock. This equity may be obtained upon the completion of term sheets and other legal documents. Often, it takes a persuasive investor pitch to convince angels to invest in your venture. They are taking a risk by investing in a newly formed company that hasn’t realized its potential. The newer the company, the more difficult it is to predict how it will perform. Thus, when dealing with business angels, be advised that some will want majority ownership to mitigate their investment risk. If you lose majority, it will drastically reduce the control and flexibility you have over the company.