(this post is a feed post from my comments on reddit)
r/startups
Regardless of prototype, you need an entity that the cash can be invested into. The prototype and investment are separate issues.
This investor wants to see a prototype before investing; another investor might be comfortable without the prototype – but that still doesn’t resolve the issue of what is the legal entity they are putting the money into? Which bank account? What legal entity would they sign their SAFE/ convertible note against? Unless the suggestion is that you want to be personally liable and consider all your personal assets to also be the entities assets.
Should I incorporate while I am very early stage
by instartups