Forums: Discussions for entrepreneurs and small business.

Thanks to everyone who has responded to my previous post!

Another question in regards to VC/Funding is what does a VC want in return?  High risk/high return I would imagine.  But lets say you are being funded for 10M, do you need to `bond` or personally match the amount of investment by a VC personally before they invest?  Or if they invest in the company, and the company goes bankrupt- are you (the owner) liable for damages?

Thanks!!

mack77,

Generally speaking, you would not be personally responsible - if the deal was structured properly as an equity investment. And you would want to be sure it was structured so you weren`t personally liable

Venture capital firms don`t expect you to "match" their investment - however, most like for the founders to have some "skin in the game" because they feel that makes it more likely you will stay around and not walk away if things get a bit difficult.

-------------------------

Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com