Forums › Forums › Q & A › Startups › China: A group of 4 investors want to take our small school on an investment trial run ($150,000), to see how viable it can be, but they’re asking for (collective) majority ownership. What are my options?
MemberOctober 12, 2019 at 12:32 pm
Hello, all – First time poster, here, so if I do something wrong, please correct me. I’m an American who lives and works in Taipei (and sometimes China), and created my own school with my wife. Her parents already own several physical school locations, in both Taipei and Guangzhou, so we’ve been running our classes out of those locations. Our school has its own, separate branding/logo, curriculum, etc., all made by ourselves. In comes these 4 Chinese investors who want to expand our idea in China, but they’re concerned we don’t have a school 100% dedicated solely to our brand (since we’re operating out of in-law’s schools). We don’t have a clear/pure revenue stream, since we’re operating out of schools that also house other, popular brands. They want to give us $150,000 to setup in a new location, in China, with curriculum, branding, and advertising of only our school’s services. The catch is, they say this new entity will be controlled based upon investment percentage, so whomever invests whatever percent, gets that percent of ownership. Now, these guys are millionaires, literally, so they clearly have the upper hand in investment. I don’t know enough about ownership splitting when investors get involved. It’s my first time crossing this bridge. How can my wife and I retain ownership, but still get investment? Literally, my only knowledge on this matter comes from watching Shark Tank, which I’m sure isn’t the best source. If there’s some burning question/issue I haven’t addressed, it’s simply due to my lack of knowledge in this area. Let me know! Thanks for any help and advice you can give! – by hq overview jostler57 – –