I`m running a new company aimed at entrepreneurship. We are at the eve
of launch, which will include a number of remarkable products and
Amongst others, an on demand software system, that integrates CRM,
ERP, Fulfillment and Support. In other words, one system for your entire
Because of the potential of the business, I have financed all development
myself. We`ve been successfully bootstrapping until now. (Sales of about
$150k and highly profitable). But after all investments in our
product line-up, working capital is at a low point. Which you can imagine.
Enter investor/entrepreneur, who offers me this:
- Loan of $100k,=
In return for:
- 40% of shares
- 50% say in management
- And after repayment of the loan the first $750k in free profits will be
100% for myself.
I`m thinking, this is not a deal to be done, but I am considering it,
because I want to asure the company of a successful launch.
What do you think? Is this deal fair?