--Don't outsmart yourself. Keep your corporate structure simple and use service pros (lawyers, accountants, bankers) who always do high-tech startup work. Uncle Joe, the divorce lawyer, might be cheaper, but you'll regret using him.

--Don't be paranoid. If you're concerned about a competing investment, explain the basics of your company and ask potential investors if there is going to be any overlap. Corollary: Take money from people you like. You're going to be working together for a long tim...