Not true. Minority stakeholders are actually protected from this
behavior in many states. I think the level is 15% in Colorado. If you
aren't careful raising money you could end up with your Popsicle in a
wringer. Check investment rules. If you take money which exceeds the a
certain percentage of an individual's net worth, you could be in
trouble. If you don't disclose risks you could be in deep weeds.
You can find Angel investors - just google around for incubators or
angel investors. They can and do know how to invest and how to help your
company grow. Be prepared to sell off more of your company though as
time moves forward.
Charles Wu wrote:
a passive minority equity position stake in a privately held company
is worthless, as legally, the person with the majority stake can make
100% of the decisions (in terms of purchasing, spending, cash
think about it, if it was your money, would you be willing to just
"invest it" into a company when the majority partner can do whatever
he/she wants to and you have no recourse?
WISPNOG Park City, UT
August 15-17, 2005
*From:* [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] *On Behalf Of *Dylan Oliver
*Sent:* Monday, August 22, 2005 4:10 PM
*To:* WISPA General List
*Subject:* Re: [WISPA] Taking on an investor?
would you expand on that?
On 8/22/05, *Charles Wu* <[EMAIL PROTECTED] <mailto:[EMAIL PROTECTED]>>
FWIW...no invester (other than friends and family) worth their
salt will be
willing to invest capital into the company for a minority
position, as that
is basically a sure way to guarantee the loss of their money
That said, there is a fool born every day
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