Equity Fund Raise

by a searcher from The University of Chicago - Booth School of Business

9 months ago

I am currently under LOI to acquire a company in New Jersey. I am getting great response from Investors. But, one of the big investor is  asking to  

 Add waterfall distribution
Add a salary cap to my compensation. 
Are these requests normal?

I would greatly appreciate your comments. If you have some time, would love it if you could DM me for a 15 min conversation.

0 likes
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7 comments

searcher from The University of Chicago - Booth School of Business

Thank you ^Searchfunder member‌

9 months ago | like reply | 0 likes

searcher from University of Massachusetts Amherst - Isenberg School of Management

These are normal but it ultimately depends on your deal and size of the company. I would be surprised if your other investors are not expecting a similar waterfall and salary cap and just have not asked yet given that it is so standard in deals

9 months ago | like reply | 0 likes

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