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This only works well if the parties have equal access to that kind of cash. Otherwise you might get into a situation where the richer founder can just decide to
by y7 5y ago
This only works well if the parties have equal access to that kind of cash. Otherwise you might get into a situation where the richer founder can just decide to buy the other founder out at a price which is unfair but still beyond their cash means.
- blfr 5y agoWith enough time, the other founder can find outside investment.
- hvidgaard 5y agoThat assumes that the founders have enough intimate knowledge of the other founders personal financial situation. They clearly risk becoming a victim of it them if the other founder can find enough money. If a company is clearly worth more than the offer, finding outside investment or even traditional financing through the bank shouldn't pose that much of an issue.