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I am not impressed. You are issued stock or a convertible note after your initial investment and you can cannot convert that note till the company is either bo
by SCAQTony 14y ago
I am not impressed.
You are issued stock or a convertible note after your initial investment and you can cannot convert that note till the company is either bought-out or goes public.
What if they don't do either and simply reinvest the "profits" back into the company thereby showing no profits?
What happens if the board of the directors of the company you invested in dilutes your shares by issuing more-and-more stock to themselves and others year-after-after till your percentage of the company is practically non-existent?
- deleted 14y ago[deleted]
- nlh 14y agoI hope this doesn't come across as dismissive - but that's kind of the deal you get when investing tiny amounts (relatively) with early-stage startups. You're basically investing in the team (and their assumed honor) in the hopes of a big exit in the future. Or, more idealistically, in the hopes of being part of the Next Big Thing. If you're looking for dividends (ie profit return) or management oversight - as an investor - you're going to either invest more and get your own terms or stick to the public markets.