After getting into Sauder, I decided to watch shows that are business based such as Dragons’ Den, a TV show about investors investing in entrepreneurs. One thing that amazed me was how investors took advantage, and the majority of times, forced entrepreneurs to give up 50% of their liquidity. Not sure whether it was due to pressure or a desperate need for support, but entrepreneurs would agree to give away 50% liquidity.
In my opinion, giving up 50% of your business is not worth it. They seem greedy, and sharing 50% of all your work and the potential it has to someone who has a bigger wallet is just not worth it. Watch these entrepreneurs give up 50%:
Once investors gain most of your liquidity, you won’t have the power within the business. An example would be Steve Jobs. It didn’t matter if he was CEO of Apple; he still got fired from a company that he founded, because his liquidity was lower than the investors. In the end he was rehired, because the investors noticed that they weren’t buying the company, but they were buying Jobs’ genius. There’s also gossip of Jobs leaving Apple. Please, don’t leave us!
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