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This is especially interesting for the cases where the sharks ask for 50% of the company (saying that it is an equal partnership between the sharks and the entr
by jaredsohn 14y ago
This is especially interesting for the cases where the sharks ask for 50% of the company (saying that it is an equal partnership between the sharks and the entrepreneur.) They often even distinguish between 50% and 51%.
If ABC takes some of the equity, the entrepreneurs are now in a situation where the sharks + ABC have control.
- MichaelApproved 14y agoCould it be that in those cases the royalty is initiated instead?
- benologist 14y agoSeems like a royalty would be against the shark's interests, that's money out of their pocket whereas equity is just another chunk of your company you gave up.