Question
I own a 100% shareholding of a company generating reasonable profits and am currently raising a round of funding primarily to scale and fund growth.
In addition to a capital injection into the company, due to personal circumstance I need to release some of the equity personally. Is this common? How would this be viewed by potential investors?
Answer
Possible, but potential deal killer. You need to be careful to wait for the appropriate moment to bring up this request and, then, only if you have leverage in the negotiation.
