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Had an offer for someone to invest $30,000 for a return of 5% (alien.top)

submitted 11 months ago by Nivsy_21@alien.top to c/entrepreneur@indiehackers.space

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Someone wanted to invest 30k into my landscape company for 5% return, now I’m not the smartest guy out there and someone is free to correct me if I’m wrong but shouldn’t that 5% be until the loan is paid off and not until I give the company up

Again I’m very new to this so I could be looking at this horribly wrong

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[–] Enkis_Champion@alien.top 1 points 11 months ago (3 children)

It’s not necessary that they would retain full control. It’s atypical but the investor could ask for a new super voting share class to be created giving them say 25 votes per share. Then the entrepreneur would keep the majority stake but lose the controlling interest. My advice: look at the term sheet Carefully! Also is your business really worth 600k given the future value of your cash flows? Make sure you get a fair deal :)

[–] TO_GOF@alien.top 1 points 11 months ago (2 children)

I think he is better served by hiring his own lawyer to advise him if he is given a contract drawn up the investor.

[–] RawDogRandom17@alien.top 1 points 11 months ago (1 children)

It would cost over $2k to have a lawyer review a $30k equity deal

[–] behrific@alien.top 1 points 11 months ago

I’m not one to get an attorney over most business matters, but selling equity is one that calls for an attorney 100% of the time.