4 ms·

I don't understand the local company/mother company distinction. A startup doesn't normally have a child company or a mother company. Is this really a spinoff?

I don't understand the local company/mother company distinction. A startup doesn't normally have a child company or a mother company. Is this really a spinoff? And there are outside investors? Sounds pretty strange. However, I can see how in a situation like this the mother company might not go for you being an investor, (maybe it isn't the founder). Is the mother company itself large and profitable? If they aren't, why are they spinning off? If they are, why are there outside investors and no salaries? Profits in year 2? Are you pretty sure there will be any? This whole thing sounds flaky so far.

dotcoma 15y ago
Mother company: a UK Ltd company. Business angels invested in this company. Business started less than a year ago and at present almost certainly earning profits every month in one EU country (not the UK) where they already have a local company, which is 100% owned by the UK Ltd. Planning to open a number (let's say up to 4) of other local companies in other EU markets. I would have had shares (say 10%) in one of these local companies. Pretty sure there would have been profits in year-2. Thanks and I hope this clarifies things a bit.