Putting this in "Investing" even though I think it could also fit in "People & Relationships."
My cousin is a pharmacist of 20 years and has invented a doodad that makes dispensing prescriptions easier. She's asking my parents to invest in her idea.
My parents are wealthy (they've just retired and have $1M in a 401k and a sizeable inheritance they just received from my grandparents' real-estate trust). They just called me and asked me to come watch my cousin's Zoom pitch on her business idea to them. I'm not sure of the amount she'll be asking for yet.
My questions:
Thanks!!
My cousin is a pharmacist of 20 years and has invented a doodad that makes dispensing prescriptions easier. She's asking my parents to invest in her idea.
My parents are wealthy (they've just retired and have $1M in a 401k and a sizeable inheritance they just received from my grandparents' real-estate trust). They just called me and asked me to come watch my cousin's Zoom pitch on her business idea to them. I'm not sure of the amount she'll be asking for yet.
My questions:
- Is this a good idea? Could this stress my parents' relationship with my cousin?
- What due diligence / questions should I suggest they get before investing?
- Should she go to a bank for an investment first, and then just turn around with the offer and see if my parents can give her slightly better terms?
- Is there an upper-limit amount they shouldn't invest over?
Thanks!!
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