I regret taking so long to subscibe to services as startupnation, because I see the issues are discussed fairly among many people with ideas. And regretably Ideas although the main thing, but often the cheapest, of course with respect to good execution.
I have struggled with few Private Equity Funds about my company with no result, because when I see the contract written in paper, I see that they want to trick me. Hence no fair deal would come up that shall compensate my 24/7 thinking and working.
Now I have come up with even bigger and more profitable and with less risk economic model, and even a business plan that solves many of the problems like people, branding and market barriers and penatration. And I am thinking what shall be my preposition for VCs!!! So here is my question to the forum. Would a VC agree to such a funding scheme?:
The scheme is to convert on periodic bases a debt for equity, hence VC would not fund the company with capital increase for interest, but would be able to convert debt with premium for share at certain point in time of the business development. This is a way for making a correction of the VC interest in the companies after a period of capital increase. Hence, if a company performs better than the forecast, VC stake should be decreased.
I really doubt that they would agree on this!!!
Can anybody give suggestions?
I am really looking for a model in which I would be able to preserve more of the interest to my self or closed group of owners. The main purpose of this is not to be GREEDY, but to preserve controlling stake in the company, what has been an issue in almost all contracts with VCs.
I am looking a way to rise money without getting VC messing into business afairs, without being afraid that the company would get sold to another fund contrary to the global plan.
I suppose there are many ways of doing this. I would appreciate any suggestions on what is the most plausible way that a VC would agree on.