In business investment, investors who want to be actively involved in a company's operations and treated as founders typically require significant equity stakes (such as 10%) to feel motivated and committed to helping the business succeed.
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The Rumpl PitchAjouté :
Did you say royalty?
>> royalties. Was I being nasty to you? I take it all back.
>> all fair.
>> [laughter] >> Okay, hit me. What do you got?
>> All right, so I would like to potentially structure this as a $600,000 loan, 10% interest payback [music] over 2 years, and then 5% of all revenue generated in the sports license channel.
I'll give you the $600,000.
I'll take 4%, [music] but we're not going to call it a loan.
I'm just going to say give me 10 bucks a blanket till I get back [music] $1.8 million, and I keep the 4%.
The deal is $600,000 loan >> [music] >> at 10%, 2 and 1/2% to me and to Damon for 2 years, and [music] 10% equity.
The deals keep on getting worse for you.
There's no way you're giving up 10%.
>> [music] >> That's right. I'm not giving up 10%.
>> I'm only going to focus on two, maybe three investments a year. I'm going to get involved like a founder, and so I need [music] to be treated like a founder, and unless I have 10% equity, I just won't feel like a founder, and I won't be motivated [music] to help you as much as I want to. Guys, I'm sorry. I can't do these deals. Oh.
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