What Does An Investor Do with Their Money Once an Agreement is Made

Its an easy question, but I am new to this along with my investor. When an agreement has been made to invest in a company, what should happen next with the money?

I would love to know best practices or even all practices on what investors tend to do. What I am looking for specifically is how does the money get from the investors hands to the Founders hands? I imagine, its either a check or wire transferred into the bank account of the company. Or could as another practice might be, just giving it as a "gift" to the founders? I am no expert in this, and would love to know.

With that money, now securely in the an account, whats the best way to make sure it see's the least amount of taxes and is able to pay the founders for their time making the product?

Thank you.

What I am looking for specifically is how does the money get from the
investors hands to the Founders hands?

There is this big secret thing called "Bank account" and a very very arcane ritual called "bank transfer".

Once the paperwork is signed, the investor will use hi hidden knowledge of bank accounts and initiate a bank transfer from his to your bank account - naturally only if you belong to the elitist few which havea bank account.

Or could as another practice might be, just giving it as a "gift" to the founders?

Logic 101: if it is a gift, it has nothinggiven in return, so obviously it is not an investment.

Maybe just reading up a little on company regulations and basics is in order? After all, you are also supposed to follow those without breaking anyregulations - by law, btw. Ignorance is not a valid legal defense, so now may be a good time to start learning how compüanies work.

whats the best way to make sure it see's the least amount of taxes

Investments are not taxed per definition as they are not income.

and is able to pay the founders for their time making the product

Greedy working class slaves have long invented a very horrifiv thing called "wage". At one point they were not happy working for some read only. I know, ridiculous. Anyhow, they insisted on getting paid in holy currency - something that should be reserved for people of means, surely. Anyhow, there are accepted practices on how to give those workers money.

When you work, you get a wage from the company. You pay taxes on that - as youer personal income, as per your countries law. Now way around it - well, there is. THat is the way leading you to fines, closed businesses, legal trouble and possibly jail time for breaking the laws.

All basic business 101. You REALLY need to take a courses here, talk to a lawyer, accountant etc. - becuase making mistakes here gets yo into trouble. And again, ignorance is not a defense. If you miss payments, get a fine and say "I did not know" that is a good joke for everyone else than you - it will not protect you from the consequences of doing bad.

And the moment you get an investor in, quite some regulations are to be followed.