Yes, it depends on what the goal is.

If the company needs the money to grow, for example, then the company would issue new shares and the money would go into the company. Your ownership would be diluted but you'd own a smaller piece of a more valuable company.

You also need to consider what the investor thinks is going on. Does he believe that he's 'buying in' to your company so you can 'cash out' in part. Or does he believe he's helping to fuel growth?

Watch this video I made on this topic a few months ago.. https://youtu.be/1EjKjSAd1F8

If you'd like to discuss your specific situation, just arrange a call.

Thanks

David C Barnett