biophase
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Here is how I see it:
Investor A: 50% of seed funding but no experience and wants to be a offsite silent partner
Investor B: 30% of seed funding has good legal and policy background but also wants to be mostly a silent partner and advise on occasion
Investor C: 10% of seed funding has working knowledge of all positions (cooking, bartending, security) and is willing to work sweat equity for 3-4 months
Investor D: 10% of seed funding (Myself) has all the operational knowledge and would be tasked with getting the entire thing setup and running. I have all the networking connections and experience opening clubs from scratch. Would be in charge of all HR, Bookkeeping, management duties. Also willing to do 3-4 months sweat equity.
Investor A & B are basically money lenders. You could replace them with a bank or anyone else looking to invest.
Investor C & D sound more like the founders of the business, the ones that will be doing the day to day.
So basically C &D could put up 20% and get an 80% loan and each keep 50% of the company.
If you look at it that way, and you need $100k, then think how much equity do I need to give up to get $80k? Maybe 30%-40%. It's up for you to decide. But look at investors A & B as silent investor bringing nothing but money (and probably headaches) to the table.
Investor A: 50% of seed funding but no experience and wants to be a offsite silent partner
Investor B: 30% of seed funding has good legal and policy background but also wants to be mostly a silent partner and advise on occasion
Investor C: 10% of seed funding has working knowledge of all positions (cooking, bartending, security) and is willing to work sweat equity for 3-4 months
Investor D: 10% of seed funding (Myself) has all the operational knowledge and would be tasked with getting the entire thing setup and running. I have all the networking connections and experience opening clubs from scratch. Would be in charge of all HR, Bookkeeping, management duties. Also willing to do 3-4 months sweat equity.
Investor A & B are basically money lenders. You could replace them with a bank or anyone else looking to invest.
Investor C & D sound more like the founders of the business, the ones that will be doing the day to day.
So basically C &D could put up 20% and get an 80% loan and each keep 50% of the company.
If you look at it that way, and you need $100k, then think how much equity do I need to give up to get $80k? Maybe 30%-40%. It's up for you to decide. But look at investors A & B as silent investor bringing nothing but money (and probably headaches) to the table.
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