This is pretty simple to shake out... Ask them for reference to other
companies they've done similar deals with - One's who've exited one's who
are still with them, and one's who've folded. If they run screaming then
dilemma solved.
A good investor knows how to get the best deal possible for
be
worse ..'
-Original Message-
From: silicon-beach-australia@googlegroups.com
[mailto:silicon-beach-australia@googlegroups.com] On Behalf Of
caseyjohnellis
Sent: Monday, July 15, 2013 2:13 AM
To: silicon-beach-australia@googlegroups.com
Subject: [SiliconBeach] Re: Investor ownership split
:
[mailto:silicon-beach-australia@googlegroups.com javascript:] On Behalf
Of
caseyjohnellis
Sent: Monday, July 15, 2013 2:13 AM
To: silicon-bea...@googlegroups.com javascript:
Subject: [SiliconBeach] Re: Investor ownership split?
This is pretty simple to shake out... Ask them for reference
Thanks hoops and simran - very helpful info. I said no. There were too many
things that set off alarms bells (including the split). I've decided to do
the hard yards myself and have started doing the numbers sales (which has
also been the consensus after speaking to heaps of people that have
Ahh Craig, didn't know you're a product dev guy. And with the equity of
60-75% given away, that is more like a co-founder relationship. I've to say
last year I was optimistically looking for a biz dev guy, and even though
I've met a few, there are other complications like equity split, you
Congratulations, you are now facing what maybe your first big test as an
Entrepreneur - when to say no. (and say it more like F off).
Run fast.
What they are doing is seeing if you are an easy mark - you are a solo
shop, no cash, you product could be nice, you may have started to get some
On more thing...
While I have no doubt they could pull off what they say - i would have
doubts. You need to approach it the other way round. This could be the
result of a smooth sale to you. What they say, and what they end up doing
is 99% time not what you expect - a combination of
Craig,
+1 on what others have said.
There are some real predatory investors (particularly in Sydney at the
moment; trust me i know! :) - not sure if you are referring to one of them,
but be very careful - from this deal, based on what is suggested, just walk
away... even if you gave them 30% for
