Comments on: Could you have created a “dirty cap table?” https://berkonomics.com/?p=3757&utm_source=rss&utm_medium=rss&utm_campaign=could-you-have-created-a-dirty-cap-table Dave Berkus' business insights Tue, 12 Mar 2019 23:02:49 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Arthur Lipper https://berkonomics.com/?p=3757&cpage=1#comment-127200 Tue, 12 Mar 2019 23:02:49 +0000 https://berkonomics.com/?p=3757#comment-127200 Check with an attorney to confirm my belief is that selling a royalty, a percentage of the company’s revenues, for an agreed number of years, is far simpler and less complicated than selling stock, which is a share of ownership, in a company. There is no requirement to notify any regulatory agency of the transaction.

The owner of the company will have to convince one or more investors that the product or service superiority to be produced will create both consumer demand of sufficient scale to assure profitability. The royalty investor is primarily interested in the growth of revenues, not profits. There is no equity dilution, only an initial lessening of profit.

]]> By: Richard Morganstern https://berkonomics.com/?p=3757&cpage=1#comment-127198 Tue, 12 Mar 2019 22:20:18 +0000 https://berkonomics.com/?p=3757#comment-127198 Well done DC, quite right.

]]> By: dc palter https://berkonomics.com/?p=3757&cpage=1#comment-127194 Tue, 12 Mar 2019 18:28:30 +0000 https://berkonomics.com/?p=3757#comment-127194 *excluding* the value of the investor’s principal residence

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