SR
ENExample situation: Investor Offers Capital for 25%
Say an investor offers you capital, but with conditions.
Question
“An investor is offering EUR 2 million for 25% of our company. We do not urgently need the money, but it could accelerate international expansion. How should we evaluate the offer?”
What to question
What is actually being bought with EUR 2 million, and could the same result be achieved without giving up 25%? What influence is the investor asking for along with the capital? Does the speed of expansion justify permanently shared ownership, if the money isn't urgently needed?
How the depth changes
Focused → broader → deepest
Four perspectives quickly separate the cash from the trade-off: what EUR 2 million actually implies about the company's valuation, the hidden…
Five additional perspectives challenge the bias toward taking capital simply because it's offered, model a downside where the accelerated expansion…
Six further perspectives stress-test the capital structure implications for future funding rounds, negotiating a smaller stake or better terms…
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