
Ask HN: How do you deal with ownership with investors? - obituary_latte
If you are looking for capital or a merger&#x2F;acquisition, how do you deal with ownership when there are investors?<p>E.g. if you are looking to sell a company, but retain some percentage of ownership, how do you make investors comfortable with you owning 2% of a $1MM company at closing and then owning 2% of a company that someone invests $5MM in then selling your 2% at that $5MM valuation? Is there some mechanism that protects investors in a situation like this?<p>(If there is a better way to phrase this question, I’m all ears as well)
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verdverm
This sounds like a very unusual transaction. Is this what you are hoping for
or do you have an investor actually pondering this?

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obituary_latte
Have an investor pondering this. It's maybe just sounding unusual because of
the way I'm asking.

They are conveying concerns about how to transfer/give ownership in the new
company because their argument is that it wouldn't be fair to an investor to
invest some large sum which then, for instance, I turn around and sell my 2%
at a larger valuation due to their investment.

