Questions

Depends.
Case 1 : You want majority shares to be within your close circle.
Well, in this case, your friends and family control over 51% of shareholding. But this limits the amount of money you can raise as Investors only have 49% portfolio in your company. Now, if you want this business to be scaled upwards, this will be a limiting factor. On the other hand, your inner circle will call the shots.

Case 2 : You are ready to give a majority to investors outside your close circle.
In this case, you and you only should control 21% of equity shares in your company. This will increase the fund infusion capacity of investors. But, the risk in this case will be when few investors, together, own majority shares thereby limiting your control.

So, bottom line is all about your control on the company.
Hope this answers your question.


Answered 2 months ago

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