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Derrick Spears posted a new Financing A Business thread on 6/9/2009

I have an investor, now what?

I've found my investor for my startup small business. What I can't really find is where to go from here. I want to make sure to retain control of my company, but the investor will be putting up way more capital than me. Any advice?
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Anthony Mungin Responded on 7/10/2009


What happens if investor is putting up the 100k and I am putting up the 10k? Works in reverse huh? SO they get a larger share of my company than me?
 
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Paul Bernard Responded on 7/21/2009


% share holding has nothing to do with who controls the company. Shareholder % only comes into play when there is an exit or other event requiring a shareholder vote (merger, etc). If you want to retain day to day operating control the key is to have Board control. Boards determine pay, day to day decision making, elect officers, etc. By the way, what investor would put up all the money and not get the benefit of ownership? That's called debt and the return on debt has more guarantees.
 
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