Early stage startups are typically built to fail and although $50k isn't a lot in the modern sense of the word, you should really be careful in this situation.
You seem to be providing a small seed round so if they are successful, prepare to be diluted significantly (or forced to pay more to maintain equity portion). There are many rounds to come (Best case scenario).
The worst case scenario is that the money evaporates along with the startup. 20% of nothing is still nothing, unfortunately.
With regard to your acquisition of the site and technology - consult a lawyer. If the startup is incorporated already, then you will have to do some paperwork and you can ask for clauses that grant you I.P. rights if the company goes under.
A hands off approach would be nice, but you have to be careful. On the one hand meddling too much will interfere, but on the other hand doing nothing is typically a fast way to lose your money.
Best of luck if you decide to invest. If you have any other questions shoot me an email (in my profile)
You seem to be providing a small seed round so if they are successful, prepare to be diluted significantly (or forced to pay more to maintain equity portion). There are many rounds to come (Best case scenario).
The worst case scenario is that the money evaporates along with the startup. 20% of nothing is still nothing, unfortunately.
With regard to your acquisition of the site and technology - consult a lawyer. If the startup is incorporated already, then you will have to do some paperwork and you can ask for clauses that grant you I.P. rights if the company goes under.
A hands off approach would be nice, but you have to be careful. On the one hand meddling too much will interfere, but on the other hand doing nothing is typically a fast way to lose your money.
Best of luck if you decide to invest. If you have any other questions shoot me an email (in my profile)