It has been our experience that this is the most difficult question to answer for our entrepreneurial clients. The answer is quite simple actually… “As little as possible.”
However, most entrepreneurs cannot sell a small portion of their company for very much money. Even worse, most wait too long to start the capital raising process or stop the process too soon, thereby putting them in a relative position of weakness. Desperation seeps in and they end up selling too much of their company’s most precious wealth building element, e.g. “The Common Voting Equity” too soon for too little.
The use of hybrid securities will enable you to keep most of your company and voting control while attracting investors far more interested in their return than yours, e.g. your Common Voting Equity.
Want to know more? Download your complimentary copy of the abridge edition of “The Secrets of Wall Street – Raising Capital for Start-Up and Early Stage Companies”. https://www.commonwealthcapital.com/Financial_Architect/
Let us know your experience.
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