3 ms·

Let us assume the $100k investment is enough to get the company to a stage of moderate revenue/profit or traction. What exactly would be the problem with this?

• mchannon 3y ago
  No, let’s not assume that. $100k sounds like enough but it goes so fast. You’re betting a lot on a hunch. If you spin your $100k as a founder’s share, it’s maybe less toxic. But investors want to see their money again, and revealing a share sale like this with a straight face is the economic equivalent of your wearing white makeup, a red rubber nose, a checked jacket that’s three sizes too large and clashes with the tie and pants, and size-85 shoes. As an investor I’m taking a pass for this reason alone if you gave your first 20% away that cheap.