Although my direct stake in this company will be less than 25 percent of the overall investment, will there be any way in which i can take control of this company. Will it be possible to propose to my investor to put in the money in the form of debentures? Or is there any other methord you would like to suggest. Thanks!!I am interested in raising startup capital for a new company. How will it b possible for me to retain control?
You can issue:
1.Stock that has 10 voting right.
2.Stock that has 1 voting right.
3.Stock that has no voting right.
You give others the 1 voting right or no voting right stocks while you keep the 10 voting right stocks.
Google does it.I am interested in raising startup capital for a new company. How will it b possible for me to retain control?
If you get funding from VC companies or angel groups they would expect at least 20% of the company (with full voting rights), and most would expect seats in the board. So there is no way to get funding from them without giving up control. If you want to keep control you should get funding from family and friends (although that may raise other issues if things go bad).
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