It seems as though it is becoming the standard that when an investor gives $$ that they are also demanding a piece of your company. Meaning % of the ownership, say so on policy, kickback if the company closes, etc. It used to not be like that. So the idea of having your own company is a thing of the past. You do not soley have say so on what you do unless you can totally finance your company. Is this actually true, and if so please explain it in more detail because I am a little confused at this change. I am wanting to have a better understanding.
Was hoping to get some answers from some heavy hitters that know this stuff. Guess there aren't any on here.
This depends on how much you are taking and what percentage you are taking to fund the company. So many venture capitalists are just dirty. You have to be really careful. We went through a few rounds of fund raising. Each time people bought more voting rights. However, day to day management and strategy is left to Senior Management and the Board. I am on both. Only the CEO is on the board and in Senior Management like myself. The rest of the board and the rest of the senior management is not connected. Each situation is different.
