Question
What kind of stake in the company does the investor get? How do we strike a balance between retaining control over the company and maximum support for us?
Answers: 2 public & 0 private
A VC probably won't look for control, but they may want a say in how the business is run. An angel may ask for more as they are coming in earlier and there is greater risk. Feel free to contact me if you want to discuss.
Look for me at www.aehesq.com
The stake is determined by the type of investment - equity/convertible debt/etc. and the pre-money valuation. Usually "control" is exercised through a Board seat and control provisions usually around change of control events, further fundraising and distributions
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