[prashantdesale]

I think you can take money by giving investor a convertible note.

Here is what I found on web regarding Convertible Notes.

------------------------------------- Convertible note is a debt instrument that can be converted into stock at the option of the holder or the issuer. More specifically, the investor can choose to convert the total amount of the note into equity when an institutional investor (such as a Venture Capitalist) makes an investment. ---------------------------------------

but off course you should talk to Lawyer before making decision.

[fusionman]

Convertible Debt is a popular instrument currently. Make sure you understand it though. What is it convertible to? This typically means that you intend to allow your debt holders to convert their investment to stock offered at the time of accepting Series A (or next round) funding....and they convert it at a discount....and the interest accrued is converted to stock at the same discount. Typically the max time frame for the debt is 1 year (securities issues I believe...has to be registered if longer), so if you don't anticipate taking additional funding in the near future, convertible debt is probably not for you. We could discuss this forever, but thats enough for now.