Ready for an investor? - SYST Business

Ready for an investor?

Winning a big investment is the dream for many start-up founders. But is your business ready to take on the commitment?

What does investment mean for you?

Investment, whatever type it is, generally means there is some benefit given in return by the company, often equity, so the investor can enjoy the benefits of the growth of the company in return for the time, access or money they put in.

Investment, whatever type it is, generally means there is some benefit given in return by the company, often equity, so the investor can enjoy the benefits of the growth of the company in return for the time, access or money they put in.

Taking investment as an entrepreneur is an important decision, as most likely you will give up some of your ownership of the company. To be a fruitful decision, that trade-off needs to bring a value which creates greater value for your company in the future than what is given up today. The golden rule is to give away as little as possible, but you do need to be realistic as to the company valuation, which of course determines what you give away, as that values the amount of investment you bring on…

Sometimes this is where the company forgoes well-needed resources, as a valuation cannot be agreed with potential investors as you (or the founder/CEO) values the company much more generously than the potential investors.

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