Thoughts on Private Equity?

[jwharton333]

Hey guys,

Tried finding any threads on this, but nothing really popped up.

I've got two businesses started. And barely started at that. LLCs formed, a few thousand seeded from my own accounts, and a basic website. Just announced my changes on LinkedIn, and I had a Private Equity firm hit me up the next day, asking to meet and see if they could invest.

What are your experiences with PE firms, if any? What should I expect, and what to avoid?

 

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[Odysseus M Jones]

What should I expect, and what to avoid?

Expect your pants to be pulled down...

Avoid PE firms.

 

[jwharton333]

Expect your pants to be pulled down...

Avoid PE firms.

Appreciate the heads up. Any experiences to share?

 

[roguehillbilly]

Taking investment money isn't necessarily bad or good, just depends on your goals and if it's a fit.

That said, taking on investor money means you likely lose control of your company and dilute ownership. They'll likely want an exit so they get a return on their investment. Not always, there are PE Firms that are paid their dues back from cashflow etc.

That said, if you have barely started your companies as you said and have no traction, growth, customers, etc, I don't think you are probably ready to even think about it. What would you do with the money? I'd only take it if you have a clear way to use it and can't self-fund.

DYOR I know nothing

 

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