A handshake isn’t enough: what happens when investors back out

Recently I had the opportunity to raise a small round of seed funding for my subscription sock company, NicSocks.com. The figure was about US$25 000 and I was raising it from an angel investor.

We had an aligned vision, we spent months discussing where the business going, how we were going to move the company towards our next goal and what we would use the funds for. Everything was on track. We had a handshake agreement that I thought was as good as gold. It wasn’t and the deal fell through after months and months of work.

Here’s the first re-learned lesson from my experience:

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