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The Workplace

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  • Let me provide some more background about your first few concerns. The reason the company is been raised through this small pots is that per design of the business activity (of which I can't go into detail) it's useful that all shareholders have the same "interest" in contributing to the activity. From what I know, Bob could've raised the company by himself, but that would've been counterproductive. Also, 100,000€ may not be a lot of money in the US, where the venture capital markets are a bit insane, but where I live is a pretty solid starting amount of capital for a company. Commented Jun 7, 2022 at 18:12
  • Regarding your second point, I agree. I will make sure that before I move any further with this deal, I get the agreements crystal clear. Commented Jun 7, 2022 at 18:15
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    @965311532 are all the shareholders active participants in the business? Honestly that sounds extremely weird with 20+ of them. If he gets 20+ people to pay to work for him (like hey doing with you) he’s the spiritual son of Ponzi and Madoff! Commented Jun 7, 2022 at 22:45
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    Like jcaron, I am struggling to think of a reason why splitting ownership of the company like that will affect its success. What happens in 5 years when the original investors want to sell up? Do you have to tell the venture capital company they can only have one of these tiny pots? It all sounds very fishy Commented Jun 8, 2022 at 6:08
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    @965311532 the trouble is that the agreements may seem crystal clear to you, but how much do you know about business and tax law in your country? There can be profound legal and tax implications from the details of how this deal is structured. For example, in many countries this could be done as a "partnership", in which case you could be personally liable for ALL the debts of the company. You need to consult a lawyer. You could be exposing yourself to a huge legal risk for a tiny amount of money. Commented Jun 8, 2022 at 20:03