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My dream is to start a company with sufficient traction and revenue that I can demand investors take common stock if they want to invest. Such a situation woul
by dasil003 11y ago
My dream is to start a company with sufficient traction and revenue that I can demand investors take common stock if they want to invest. Such a situation would be a huge recruiting advantage, and combined with a generous and transparent employee equity plan would enable a much stronger team than traditional arrangements allow for.
The only problem is getting that level of traction is far from easy.
- pc86 11y agoI think if you had that level of traction and revenue, more often than not you wouldn't need any investment at all.
- w1ntermute 11y agoExactly, you could just use debt financing instead of giving up equity.
- adventured 11y agoYou don't need traction to get that. There are a few big investors that are willing to buy common stock. I have one owning part of my company today. I had zero traction, just an early functional product. I would never allow an investor into my company under any other terms: they eat the same dog food I or anyone else does. You don't need their money, there is a lot of money flowing around out there, so set the terms how you see fit and find the investor to match it.
- matrix 11y agoMind expanding on how one might find such an investor? I agree that the ideal scenario would be for investors to take the same risk (and reward) as other shareholders, but I have no idea how to find investors receptive to that idea.