NYCPHP Meetup

[Paul A Houle]

Bob Gulian wrote:
> Excellent links, Brian.   I personally, have never worked under this 
> kind of arrangement.  Possibly it will be more common with the economy 
> in the state that it is.  There are different kind of equity 
> arrangements.  Ten thousand shares of stock for "when the company goes 
> public" has got a far less chance of paying off than a partnership (a 
> share in company income and direction).
>
> Bob
>
    I wouldn't get involved in an equity relationship of any kind unless 
I knew the people involved and believed in the business.  For instance,  
a friend of mine was having trouble getting a bank loan to start a 
business -- I suggested to him that he try equity financing.  I chipped 
in a little money and so did about ten of his friends.  Now the business 
is doing well and has expanded into a new location.

    I got burned once by somebody who offered me 50% of payment in 
equity for a company that he later sold.  In that case,  the business 
was an international affair that was based in the Virgin Islands and 
doing business in Latin America.  I suppose I could have recovered $50k 
or so with a lot of trouble,   but I already moved on and didn't need 
the hassle.  The "offshore" business was a source of entertainment for 
me:  the owner would sign me on as a contact person and I'd get phone 
calls from people who wondered if our business was a scam.