When you get funding from a VC or angel for your startup, what does the angel/VC get in return?
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?
Fundraising
CATEGORY
United States
COUNTRY
Apr 04, 2015
POSTED DATE
2
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Answers: 2 public & 0 private
IP Consultant
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